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HP, 3Com deal gets approval

No competition concerns here

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HP's takeover of 3Com is likely to get the nod from European regulators this week.

The ink giant paid $2.7bn for the network kit maker in November.

The European Competition Commission is not commenting officially but anonymous sources told Reuters: "It should go through smoothly. There are no grounds for offering conditions. It should be an unconditional clearance."

The EC can either approve such mergers unconditionally or insist on behavioural or structural changes before the deal goes through.

HP said at the time that 3Com filled in missing gaps in its product portfolio and also had impressive market share in China.

US regulators are separately investigating trading in 3Com shares. Just hours before the deal was announced trading in 3Com stock reached a six month high. ®

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