The European Commission gave formal clearance to the proposed merger between Hewlett-Packard Company and Compaq Computer Corporation. The Commission's Phase I clearance follows a lengthy pre-notification review conducted by the Commission after the parties signed their merger agreement on 4 September, 2001.
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.
"This is an important milestone, particularly given the significance of Europe to us," said Michael Capellas, Compaq chairman and chief executive officer. "We will continue to work with regulators around the world in satisfying their requirements."
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.