Universal Music has reportedly offered to sell two key music publishing catalogues in order to secure regulator approval for its previously reported (and just mentioned in fact) takeover of BMG Music Publishing. European competition officials are still considering whether or not to allow Universal to merge BMG's publishing company with its own to create a new company of similar to size to current market leader, EMI Music Publishing.
Despite both Universal and Bertelsmann stating they are optimistic their merger proposals will win regulator approval, doing so is not a foregone conclusion given the continuing concerns regarding the further consolidation of the major music companies, especially in light of the European court ruling last year that said EC officials should not have allowed the 2004 merger of Sony and BMG's recorded music companies. Pan-European trade body IMPALA, whose opposition to the SonyBMG merger led to that court ruling, are also opposing the Universal BMG publisher merger.
In a bid to convince regulators their merged publishing firm would not be too dominant in the market place, insiders say Universal have said they will commit to sell off two key catalogues currently owned by BMG - the Zomba catalogue originally established by Clive Calder and the 19 Songs catalogue originally established by Simon Fuller - both subsequently acquired by BMG and including songs written or made famous by the likes of Britney Spears, Bryan Adams, Backstreet Boys and various winners of the Pop Idol TV shows.
The European Commission says it will not comment on its discussions with Universal before the publication of its report on the merger on 1 Jun, although insiders say officials are currently assessing the views of the major's competitors on the merger in light of the concessions being offered.