The U.K.'s Office of Fair Trading has published in-depth detail behind its decision to approve Universal Music Group's acquisition of V2.

In its assessment, posted today on the OFT Web site, the competition regulator noted that the two companies had an overlap in the supply music of music recording in the United Kingdom. But the enlarged group, it said, would create "small increments" in share of roughly 0.2%-1.4%, which were deemed to have little negative effect on competition in the country.

"Post-merger, other majors and independents continue to operate as a strong competitive constraint to the merged entity," the OFT writes. "With the exception of a few third party concerns, which do not lead to any credible theory of harm, third parties generally agree that the increment to Universal's share of supply is very low and that it will have a negligible (if any) effect on competition."

For the year ending March 31, 2006, V2 generated revenue of £9 million ($18 million), the OFT reports.

The corporate watchdog said it addressed third party concerns of "creeping acquisition," and on UMG's size and the structure of the recorded music market. Those issues, it noted, did not "give rise to any credible theory of harm."

And on the basis of evidence submitted -- which included sales data reported by the Official U.K. Charts Company and Universal's "best estimates" -- the OFT added that it did not believe the transaction would "give rise to any portfolio effects."

Today's full report follows the OFT's announcement on Nov. 5 that it would not refer the case to the Competition Commission.

UMG, through its Centenary Music Holdings company, struck a deal earlier this summer to buy V2 from Morgan Stanley for an undisclosed amount.

Indies' trade body AIM subsequently said it issued a submission to the OFT during the summer in which it criticised UMG's "creeping dominance" of the U.K. recorded music market, citing the V2 deal in its report.