VIVENDI, CANAL PLUS, SEAGRAM RESUBMIT EU REVIEW
On Friday (9/1), the European Commission said it had until Oct. 2 to rule whether to approve the merger or send it for a four-month in-depth investigation. That deadline will automatically be extended by two weeks if the companies come forward in the next three weeks with concessions to address any potential competition issues.
The probe into the competition aspect of the merger had been expected to conclude by Aug. 21. Earlier this month, the EU suspended its investigation of the $34 billion deal while the companies provided it with further data (hitsdailydouble.com, 8/9).
On Wednesday (8/30), Canada's Competition Bureau announced it had approved the deal, stating it would "not result in a substantial lessening of competition." Last month, Seagram said the deal had received the implicit approval of the U.S. Federal Trade Commission.
The merger would create Vivendi Universal, a media giant to rival the proposed AOL-Time Warner merger. The Commission is currently subjecting that deal, as well as Warner Music's joint venture with EMI, to detailed merger reviews.
Two weeks ago, the companies received detailed "statements of objection" which expressed the EU's concerns that the deals could reduce music publishing and digital delivery competition to just four firms in Western Europe.
