Seagram Acquires Polygram With Authorisation Of The Commission

Seagram Company Ltd shall acquire the whole of Polygram N.V.

Seagram is a Canadian company with activities in the beverage and entertainment sectors. The entertainment sector is operated by its subsidiary Universal Studios Inc, active in film entertainment, music and recreation.

Polygram is a subsidiary of Philips N.V. a Dutch entertainment company active in the music and film businesses. Both companies have overlapping activities in music and film, but the acquisisiton does not raise any serious doubts as to its compatibility with the common market. Seagram has limited market presence in EU member states as most of its repertoire is sold in North America.

The parties won't have any dominant position in the production of films because there are other strong competitors.

For the film distribution, Polygram's films may in the future be distributed by UIP, a joint distribution company of Universal, Paramount and Metro Golwyn Mayer. The Commission is therefore investigating the effects on competition of the UIP joint venture agreements under Article 85 of the Treaty and would take into account any transfer of Polygram into UIP's distribution structure.

This article is based and incorporates information provided by the European Commission (Press releases) and is intended for general information. Specialist advice should be sought before acting on it.