BMG and Concord are merging, the two companies announced on Tuesday, in a major move that combines the music business’s two largest independent music companies and creates a new entity closer in scale to the major three record labels.

Financial details of the agreement weren’t disclosed, though Bloomberg previously reported the deal could be worth as much as $7 billion. BMG’s parent company, the German media giant Bertelsmann, will own 67 percent of the company while Green Mountain Partners will own 33 percent. The deal’s closure is subject to regulatory approval.

The new company will operate under the BMG name. BMG’s current CEO Thomas Coesfeld, who is set to become the CEO of BMG parent company Bertelsmann, will become BMG’s chairman, while Concord CEO Bob Valentine will be BMG CEO. The new company’s publishing division will be called BMG publishing, while the recorded music division will be known as Concord Records.

The music industry’s biggest stakeholders are the “big three” major music companies: Universal Music Group, Sony Music Group and Warner Music Group. While a combined BMG and Concord isn’t quite as large as those three companies, the new company’s combined scale gives it the ability to compete with the majors enough that it could arguably be considered a fourth major. Regardless, BMG is now unquestionably the largest independent music company in the business.

“We believe this is a truly one-of-a-kind opportunity to bring together two world-class teams and rosters at the right moment, as scale in rights ownership becomes increasingly critical to long-term growth,” Coesfeld said in a statement. Coesfeld added that the combined company “will further deepen our position as a preferred global partner to artists, songwriters, and platforms, combining scale with the agility and independence they value.”

Among the artists the combined BMG and Concord represent include Jelly Roll, Lainey Wilson, Paul Simon, Phil Collins, Daft Punk.

As Valentine said: “Our greater scale will allow us to invest more in creative talent, global reach, accretive acquisition opportunities, and technology, while preserving the nimble, entrepreneurial spirit that artists and songwriters value most. This is not about replicating the major label model; it’s about using scale to strengthen independence. Together, we will build a company that gives artists more reach and more flexibility – all designed to support their distinct visions.”