HP's Purchase of EDS Gets EU Approval
In an effort to compete with IBM in global technology services, Hewlett-Packard gains approval from the European Union to purchase technology outsourcing company EDS for $12.6 billion.BRUSSELS, July 25 (Reuters) - Hewlett-Packard won permission from European Union competition regulators on Friday to buy technology outsourcing company Electronic Data Systems Corp for $12.6 billion. The deal is aimed at helping HP compete better against IBM in the global technology services industry, and vaults HP to second place behind IBM. EDS is a pioneer of the outsourcing of managed computer services.
"The Commission concluded that the concentration is unlikely to raise competition concerns," said a statement from the European Commission, the EU's executive arm.