Universal said to expect in-depth EU probe on EMI takeover

Vivendi SA’s Universal Music Group expects European Union regulators to open an in-depth probe into its plan to buy EMI Group’s recorded-music business, according to a person familiar with the situation.

The company opted not to propose any antitrust remedies to allay concerns over the deal, according to the person, who declined to be identified because the plans aren’t public. Universal may choose to make concessions during the so-called phase II of the merger review, said the person.

The European Commission’s deadline for submitting remedies was March 16. The EU’s antitrust regulator has a deadline of March 23 to either approve the deal or extend its review by about 90 working days.

Citigroup Inc. agreed in November to sell EMI Group’s recorded-music and publishing businesses in separate transactions for a combined $4.1 billion. Universal will buy EMI’s record labels, home to Katy Perry and Coldplay, for 1.2 billion pounds ($1.9 billion). A Sony Corp.-led group that includes billionaire David Geffen will pay $2.2 billion for the publishing unit.

Vivendi in Paris declined to comment on the EU probe.

Warner Music Group, an unsuccessful bidder for EMI, will lobby in the U.S. and Europe against the sale of the company to Universal, retiring Chairman Edgar Bronfman Jr. has said.

Impala, a group of independent record labels, has said EU regulators should block both the Vivendi deal as well as Sony’s bid for the music publishing unit because they would increase prices and reduce competition in the music industry. Impala challenged the EU’s 2004 approval for Sony and Bertelsmann AG to create the Sony BMG record label at the EU courts, forcing a reexamination by regulators. The deal was eventually approved in 2007.

Antoine Colombani, a spokesman for the commission, declined to immediately comment.