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.

The deal won approval from U.S. government antitrust authorities on June 30.

(Writing by David Lawsky, editing by Darren Ennis)

??« Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.