The US competition authorities yesterday gave the green light to the Sony BMG merger. The go ahead from the Federal Trade Commission was the final step in the merger process after European Commission officials gave the deal the all clear last week. Only last minute contract complications will now stop the two majors combining to create a second music giant of the proportions of the Universal Music Group.
In a letter to the two companies the FTC said: "Upon further review of this matter, it now appears that no additional action is warranted by the commission at this time".
In a statement to the press BMG described the investigations by both US and European competition officials as "diligent", adding: "We now look forward to creating a global recorded music company comprising many of the world's most successful artists as well as a vast catalogue of recordings".
Although FTC officials monitored the EC's investigations into the merger, one reason why they could reach a decision so quickly, objections were never expected from the American bureaucrats, particularly as the merged major will base itself in New York, adding to city's dominance in the global entertainments industry.
Despite maintaining their opposition to the deal, the independent sector have now pretty much accepted there will be four major labels by the end of the year. All eyes are now on Warners and EMI, both of whom will be dwarfed by their two main competitors. Rumours that they will attempt to merge are still rife.