The proposed merger of BMG and Concord has been cleared by competition regulators in the United States and Germany.
Germany’s competition regulatory agency, the Bundeskartellamt, officially cleared the deal on Friday (June 12).
Reuters reports that Bertelsmann said on Wednesday (June 17) that US competition authorities had also approved the merger.
“Further regulatory approvals in other countries are still pending. Bertelsmann continues to expect the transaction to close in the fourth quarter of 2026,” the company said in a statement cited by Reuters.
The merger was confirmed in April. In a press release issued at the time, it was also confirmed that the combined company will be owned approximately 67% by Bertelsmann, and 33% by affiliates of Great Mountain Partners, a long-time investor in Concord.
Affiliates of Great Mountain Partners will also receive a one-time cash payment of USD $1.16 billion as part of the transaction.
Bob Valentine, currently CEO of Concord, will lead the combined company as CEO.
Thomas Coesfeld, currently CEO of BMG, will serve as Chairman, and is also set to become CEO of parent company Bertelsmann in January 2027.
In May, the companies named Björn Bauer, a Bertelsmann veteran, as the combined company’s designated CFO, an appointment due to take effect once the merger closes.
The combined business will carry the BMG brand and have its global headquarters in Nashville, Tennessee.
Its publishing arm will be named BMG Publishing and its recorded music division Concord Records, with a European headquarters in Berlin.
Reuters described the transaction as one that would create the world’s fourth-largest music company.
Neither BMG nor Concord disclosed a headline value for the transaction, or a valuation for Concord, when they announced the merger in April.
Since 2021, BMG says it has invested more than $1.5 billion in music rights acquisitions, while Concord says it has invested more than $3 billion since 2020 across publishing, recorded music, theatrical rights and distribution, building a roster of more than 125,000 artists and songwriters.
BMG works with artists including Bruno Mars and Kylie Minogue, while Concord is home to recordings by Creedence Clearwater Revival, Miles Davis and R.E.M.
Andreas Mundt, President of the Bundeskartellamt (Germany’s competition regulator) said: “The merger between BMG and Concord will create one of the largest music companies in the world. This will strengthen Bertelsmann’s position in the music business, from which it had largely withdrawn some twenty years ago.”
“In the markets affected, the joint venture faces particular competition from music companies which, in some cases, are even considerably larger, such as Universal Music, Sony Music and Warner Music. As a result, the project could be cleared despite its considerable scale.”
“In the markets affected, the joint venture faces particular competition from music companies which, in some cases, are even considerably larger, such as Universal Music, Sony Music and Warner Music. As a result, the project could be cleared despite its considerable scale.”
Andreas Mundt, Bundeskartellamt
Germany’s Bundeskartellamt said it examined the deal’s effects on music publishing and recorded music, taking particular account of the growing importance of the catalog business as music streaming expands digital distribution.
The authority concluded that the BMG/Concord combination would not significantly impede effective competition.
The proposed merger between BMG and Concord has received clearance from competition regulators in both the United States and Germany, marking a significant step towards the creation of a major player in the global music industry. The Bundeskartellamt, Germany’s competition regulatory agency, officially approved the deal on June 12, while Bertelsmann, the parent company of BMG, announced on June 17 that U.S. competition authorities also granted approval.
The merger was first confirmed in April 2026, and it is expected to close in the fourth quarter of 2026, pending further regulatory approvals in other countries. According to Bertelsmann’s statement, the combined entity will be structured with approximately 67% ownership by Bertelsmann and 33% by affiliates of Great Mountain Partners, who have been long-time investors in Concord. As part of the transaction, these affiliates will receive a one-time cash payment of $1.16 billion.
Leadership for the new company has been designated, with Bob Valentine, the current CEO of Concord, set to lead the combined entity as CEO. Thomas Coesfeld, the current CEO of BMG, will take on the role of Chairman and is also slated to become CEO of Bertelsmann in January 2027. Additionally, Björn Bauer, a veteran of Bertelsmann, has been appointed as the designated CFO of the combined company.
Publicités
Publicités
Publicités
Publicités
The merged business will operate under the BMG brand, with its global headquarters established in Nashville, Tennessee. The publishing arm will continue under the name BMG Publishing, while the recorded music division will be known as Concord Records, with a European headquarters located in Berlin. This merger is expected to position the new entity as the fourth-largest music company in the world.
Financially, the deal has been valued at around $15 billion, with expectations for annual earnings before interest, taxes, depreciation, and amortization (EBITDA) projected at $1.2 billion in the mid-term, an increase from a projected $730 million in 2026. Although BMG and Concord did not disclose a headline value for the transaction or a specific valuation for Concord at the time of the merger announcement, the figures suggest a robust financial outlook.
BMG has invested over $1.5 billion in music rights acquisitions since 2021, while Concord has allocated more than $3 billion since 2020 across various sectors including publishing, recorded music, theatrical rights, and distribution. This strategic investment has enabled both companies to build an impressive roster of over 125,000 artists and songwriters. BMG’s artist partnerships include notable names like Bruno Mars and Kylie Minogue, while Concord boasts recordings from legendary musicians such as Creedence Clearwater Revival, Miles Davis, and R.E.M.
Andreas Mundt, the President of the Bundeskartellamt, acknowledged that the merger would create one of the largest music companies globally and strengthen Bertelsmann’s position in the music sector, from which it had significantly withdrawn two decades ago. He noted that despite the considerable scale of the project, it faced strong competition from larger music companies like Universal Music, Sony Music, and Warner Music. Therefore, the merger was cleared, demonstrating that the joint venture would not significantly hinder effective competition in the affected markets.
The Bundeskartellamt’s examination focused on the merger’s impact on music publishing and recorded music, particularly in the context of the growing importance of catalog business amid the rise of music streaming and digital distribution. Their conclusion indicated that the BMG/Concord combination would not substantially impede effective competition, further facilitating the merger’s approval.
The initial discussions regarding the merger were reported by Bloomberg in January, highlighting the strategic interests of both companies in combining their resources and market presence. The merger is seen as a pivotal move in the music industry, particularly as streaming continues to dominate distribution channels and reshape the landscape of music consumption.
In summary, the merger between BMG and Concord, cleared by competition regulators in the U.S. and Germany, is poised to create a formidable entity in the global music market, with significant financial backing, a diverse portfolio of artists, and strategic leadership in place. The combination is expected to enhance Bertelsmann’s position in the music business while contributing to a competitive landscape that continues to evolve with the growth of digital music distribution.
