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22 January 2010 ,
Written by Dhruv Tanwar
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The European Commission has granted its approval to the deal after it was satisfied about the fate of an open-source database, MySQL. The approval removes one of the largest impediments to the deal, even though Oracle said it is expecting similar approvals from Russian and Chinese regulators. US regulators had approved the acquisition in August 2009.
Oracle's bid for Sun Microsystems was the largest M&A transaction in the software industry in 2009, at $7.4 billion. The European Commission originally had reservations about the deal over MySQL, which Sun had acquired in 2008. It took a more receptive view of the deal after Oracle made public affirmations to reassure the commission on competition issues. Oracle had issued a statement publicly committing itself to a 10-point plan for MySQL. Additionally, the European Commission observed that variations in the MySQL code base, which are legally possible on account of MySQL's being open-source software, hold the possibility of developing into a competitive constraint on Oracle in the future.
The EC had till January 27, 2010 to decide, and the delay in its approval of the deal was reported to be costing Sun around $100 million a month. Oracle has planned to host an all-day live event for customers, partners, press and analysts on January 27th, 2010 at 9:00 AM Pacific time, at its headquarters in Redwood Shores, California, where it is expected to outline its Sun strategy. |