Brazil’s Cade Freezes Purchase of EMI by Universal, Sony
Brazil’s antitrust regulator, known as Cade, froze the purchase of EMI Group by Vivendi SA (VIV)’s Universal Music Group and Sony Corp. (6758), Alessandro Octaviani, the Cade commissioner responsible for the case, said today in Brasilia.
According to the ruling, EMI must maintain its assets and portfolio of artists in Brazil and continue investing normally in the country. Sony and Universal must also keep their portfolios in Brazil. Each company will be fined 1 million reais ($491,600) if they don’t comply, Octaviani said.
Universal agreed to pay 1.2 billion pounds ($1.9 billion) to acquire EMI’s recorded-music assets last November. Citigroup Inc. sold EMI’s publishing division in a separate transaction to a Sony-led group for $2.2 billion.
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