Path clear for Sony-BMG merger: majors days away from signing deal, after US Federal Trade Commission offers green light.(Mergers)

The merger deal between Sony and BMG was set to be signed as early as yesterday (Sunday) following the US Federal Trade Commission's approval of the proposed joint venture.

The FTC's unconditional approval--which took longer to be announced than had been predicted--paves the way for the full-on merger of the two majors. The timetable, let alone any details of the planned integration of the two companies, has yet to be communicated to staff around the world, who are still being told to proceed with business as usual.

In his official statement, US commissioner Mozelle W Thompson expressed his concern at the impact of further consolidation within the music sector, not least in light of the "propensity far interdependent behaviour among major labels".

However, like the European Commission previously, he admitted that the FTC's investigation into the proposed merger had not unearthed sufficient evidence to conclude with "reasonable certainty" that the proposed venture will "facilitate co-ordination" in violation of anti-trust laws. He added that evidence suggested that "growing clout among retailers" could be sufficient to prevent the majors from "a potential collective exercise of market power".

Sony and BMG both welcomed the FTC ruling. In a statement Sony said, "Now with regulatory approvals behind us we look forward to establishing a dynamic new company that will be deeply dedicated to serving the needs of its artists, while at the same time enriching the lives of music lovers around the world."

BMG's statement added, "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. The company will be dedicated to developing and supporting an array of international as well as national artists."

Sources indicate that the integration process--which will aim to produce annual savings of around $350m and is expected to result in the loss of around 2,000 jobs around the world, many of ...