European Regulators Give Stamp of Approval to HP to Acquire 3Com

Paul Lilly

In a deal first announced in November 2009, the European Commission has notified HP that it will not stand in the way of the company's $2.7 billion bid to acquire 3Com.

"The Commission concluded that the concentration would be unlikely to riase competition concerns," the EC said in a statement , adding that "the merged company would continue to face a number of global and effective competitors, giving customers the choice from a range of alternative providers for switches and routers."

No conditions were attached to the approval, and HP said it expects to close the deal by the end of June. However, China's competition regulator, the Ministry of Commerce, or Mofcom, hasn't yet ruled on the takeover , though the deal doesn't pose much threat to competition in China.

Both companies build networking products and by adding 3Com to its portfolio, HP will increase its position in the core networking space, as well as increase its competition with Cisco Systems.

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