BRUSSELS, Jan. 31 (UPI) -- The European Union on Thursday gave the go-ahead for Hewlett Packard to purchase of Compaq, the biggest-ever information technology acquisition.
"A careful analysis of the merger ... and of the competitive forces in the markets concerned has shown that HP would not be in a position to increase prices and that consumers would continue to benefit from sufficient choice and innovation," the European Commission, the EU executive, said in a statement.
HP's announced acquisition of Compaq was filed formally to the EC for regulatory approval on Dec. 20 because of the trading implications for the EU where both companies have significant market shares.
"The Commission's analysis focused on the combination of HP's and Compaq's activities in the markets for personal computers, servers, handheld products, storage solutions and services," the statement said. "In addition, the Commission also assessed the impact of the merger on HP's joint development of the Itanium processor with Intel as well as the importance of HP's increased opportunity for joint sales of PCs and printers following the integration of Compaq's PC products."
The U.S. Federal Trade Commission was still reviewing the deal.
