EU clears ways for $87 billion merger

The European Commission has given formal clearance to the proposed $87 billion merger between Hewlett-Packard and Compaq Computer Corporation.

The European Commission has given formal clearance to the proposed merger between Hewlett-Packard and Compaq Computer Corporation.

The Commission’s Phase I clearance is said to follow a lengthy pre-notification review conducted by the Commission after the parties signed their merger agreement on September 4, 2001.

In yesterdays press announcement, the Commission confirmed that the transaction does not raise competition concerns in Europe. No undertakings or remedies have been required from the parties in order to secure clearance.

The transaction remains under review by the Federal Trade Commission in the US and several other jurisdictions. It is also subject to shareholder approval. The parties expect to close the transaction during the first half of 2002.