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EU competition probe stalls Oracle's £4.5bn bid for Sun
03.09.09
The $7.4 billion (£4.5 billion) takeover of Sun Microsystems by Oracle was put on hold tonight after European regulators launched an in-depth investigation two weeks after their US counterparts approved the deal.
The European Commission said the deal provoked "serious doubts" about competition for databases as the market is already highly concentrated with Oracle, IBM and Microsoft controlling 85% of the market.
If Oracle, the software giant run by outspoken billionaire Larry Ellison, bought Sun it would reduce competition even further, regulators fear. "The commission has to examine very carefully the effects on competition in Europe," said competition commissioner Neelie Kroes.
The decision to launch an investigation came just two weeks after US regulators at the Department of Justice cleared the deal.
Oracle conceded that it also needed European approval. "Closing the transaction is subject to certain conditions including clearance by the European Commission," it said.
