Universal Music set for takeover by Bill Ackman’s Pershing Square

Bill Ackman’s Pershing Square said Tuesday it is planning to buy Universal Music Group in a cash and stock deal.

UMG will form a newly merged company with Pershing Square and list on the New York Stock Exchange, according to the terms of the transaction, which is expected to close by the end of the year.

“Since UMG’s listing, Sir Lucian Grainge and the company’s management have done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance,” said Pershing Square CEO Bill Ackman in the Tuesday statement.

“However, UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business and importantly, all of them can be addressed with this transaction.”

This is a breaking news story. Please refresh for updates.