An unnamed source close to the Hewlett-Packard acquisition of 3Com tells Reuters that European regulators will OK the deal by the Feb. 12 deadline. HP is looking to buy 3Com for $2.7 billion to bolster its networking portfolio and converged data center offering against rivals such as IBM, Dell, Cisco Systems and Oracle. The EC has no antitrust qualms about the deal, the source says.
Hewlett-Packard should have no trouble getting approval from European
regulators for its $2.7 billion acquisition of networking equipment maker 3Com,
according to a published report.
Quoting an unnamed source close to the negotiations, a Reuters report
10 said the European Commission has no major competitive concerns about the
"It should go through smoothly," the source told
Reuters. "There are no grounds for offering conditions. It should be an
The EC, which is the antitrust arm for the European Union,
reportedly has until Feb. 12 to approve, reject or decide to further investigate
HP announced in November its intention to buy
a move that will greatly expand HP's networking offerings and make it
a formidable competitor to Cisco Systems.
It also gives HP a stronger position in its competition with
Cisco, IBM, Dell and now Oracle-with Sun
Microsystems in the fold-in the converged data center space. The top-tier
vendors are pushing data center solutions that more tightly integrate servers,
networking, storage and managed software.
Analysts have said 3Com
will help HP
in several ways, including giving the vendor a strong
portfolio of core networking products as well as 3Com's Tipping Point network
security subsidiary. The deal also will give HP greater traction in the
burgeoning Chinese market.
HP officials expect to close the deal in the second quarter.
Approval from the EC would be an important hurdle for HP to
clear. European investigators have taken tough antitrust stands with U.S.
tech companies in the past, most recently keeping Oracle's $7.4 billion
acquisition of Sun on hold for several months while investigating concerns
regarding the MySQL database technology. They eventually approved
In addition, the EC in 2009 levied a $1.45 billion fine against
Intel for what investigators said was anti-competitive behavior in its rivalry
with Advanced Micro Devices. Intel is appealing the fine.