Parlophone - formerly a part of EMI Music - was put up for sale due to regulatory issues after Universal Music's acquisition of EMI for £1.2 billion last September.
The Parlophone music label that is home to artists including Coldplay, Tinie Tempah and Kylie Minogue is being bought by Warner Music Group for £487 million.
Its sale price is more than the £300 million expected in the market.
Russian billionaire Len Blavatnik, whose Access Industries group bought Warner Music in 2011, said it was a "very important milestone" for the firm, "reflecting our commitment to artist development by strengthening our worldwide roster, global footprint and executive talent".
Warner will add to its roster some of the world's best-known artists and back catalogues, also including Air, David Guetta, Deep Purple, Gorillaz and Radiohead.
The Parlophone label group also includes the Chrysalis and Ensign labels, as well as EMI's recorded music operations in Belgium, the Czech Republic, Denmark, France, Norway, Portugal, Spain, Slovakia and Sweden.
Stephen Cooper, chief executive of Warner Music, said: "We are committed to making this a great outcome for Parlophone's artists and employees, who will find in WMG a similar spirit and culture that is dedicated to providing the most supportive and innovative home for recording artists."
EU regulators ordered Vivendi-owned Universal to offload 30% of EMI's assets as a condition of approving the takeover.
It is thought that Warner fended off competition from joint bidders Sony Music and BMG rights, as well as a consortium led by American Idol founder Simon Fuller.
Mr Blavatnik is based in London and has an empire spanning oil interests to sports entertainment.