July 2 (Reuters) - Hipgnosis Song Management (HSM) said on Tuesday founder Merck Mercuriadis would step down as its chairman once the proposed acquisition of music investor Hipgnosis Songs Fund by a firm owned by Blackstone-managed funds gets completed.

Private equity firm Blackstone is a majority shareholder in HSM, which manages artists and songwriters for Hipgnosis Songs Fund.

In June, Blackstone said its takeover proposal for Hipgnosis Songs Fund would be its final for the London-listed music rights owner.

Music industry veteran Mercuriadis had stepped down as the CEO of HSM, the company said in February, to take on the newly created role of chairman. (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Shounak Dasgupta)