After a thorough investigation by the European Commission (EC) into the competitive ramifications of the deal, TomTom won unconditional permission from the European regulatory body to buy mapping giant Tele Atlas for 2.9 billion Euros, roughly $4.5 billion US.
The EC felt it needed to delve into the ability and incentive of the two companies to increase costs for their rivals if they merged, and also if they would limit access to maps which would negatively affect consumers. The EC felt this was unlikely because of high pressured competition from Tele Atlas rival mapmaker Navteq.
This is definitely a big plus for TomTom who’s been hit hard in the books by falling PND prices as it’ll give them another potential revenue stream. Next under the microscope is Nokia’s planned $8.1 billion purchase of Navteq. Given the European Commission’s reasoning for allowing the Tele Atlas purchase, we can’t see this one being approved too.
via reuters uk
