Brussels, 15/02/2010 (Agence Europe) - On Monday 15 February, the European Commission cleared the proposed acquisition of 3Com Corporation by Hewlett-Packard Company (HP), both of the US.
The Commission examined the effects of the proposed transaction on the provision of computer networking equipment where HP and 3Com are both active, in particular on the supply of switches and routers, with a possible sub-division of the market according to type of technology or number of users. The Commission concluded that the concentration would be unlikely to raise competition concerns. Its investigation confirmed 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.
The Commission also found that, although HP is present in information technology (IT) markets related to computer networking equipment, such as IT services, the proposed transaction would not give rise to any vertical or conglomerate effects. In particular, the Commission found that the new entity will have a relatively limited position in networking equipment or IT services, where there are numerous alternative suppliers. Thus, it would not have the ability, post transaction, to restrict access of competing networking equipment suppliers to customers of HP's other IT products and services. (O.L./transl.rt)