German media group Bertelsmann gained European Union regulatory approval on Wednesday for a joint music rights venture with private equity firm Kohlberg Kravis Roberts & Co. Bertelsmann, which will own 49% of the joint venture, will contribute its BMG Rights Management music rights unit, whose works include those of Kylie Minogue and Roy Orbison.

KKR will invest €50 million ($72.5 million) to finance near-term growth, with a further €200 million ($290 million) over the coming years for acquisitions. "The [European] Commission found that the proposed concentration would not give rise to any competition concerns, given the very small market share of the joint venture in music publishing and recorded music," the EU executive said in a statement.

Pension funds and private equity funds are increasingly attracted to catalogues of published songs due to their steady, recurring cash flows amid falling CD sales and as piracy hits profits in the music industry.