Universal Music Group’s $775 million bid for Downtown Music Holdings is set to be hit by a formal warning from European Union watchdogs setting out concerns that the deal could stifle services to artists signed with independent labels.
A so-called statement of objections is likely to be issued imminently according to people familiar with the matter who spoke on condition of anonymity. They added that the decision is still in draft form and the timing could slip.
While getting a statement of objections signals the EU has serious concerns with a transaction, most merging companies avoid a veto by ...