November 10, according to Reuters, the European Commission this week, two formally that it will veto the U.S. software giant Oracle’s acquisition of the computer maker Sun Microsystems Inc of the transaction, which also makes that awful total value of up to 70 billion merger of the once again cast a shadow over the prospects.
Sun to the United States Securities and Exchange Commission said the material submitted by the European Commission said in its assessment report, Sun and Oracle’s merger will lead to two related products in the entire database on the market a monopolistic position. The Oracle said it would take action against the EU’s decision. According to relevant provisions of the European Commission the right to January 19, 2010 on whether to approve Oracle’s bid before the Sun deal to make a final decision.
Earlier this year, Sun announced a partnership with Oracle’s M & A deals have been reached in order to ensure that the company’s business would be revived. Analysts believe that after the acquisition by Oracle, Sun’s computer products will be able to with the Oracle software products for joint sales, which will help Sun from a simple computer manufacturers transition to a diversified IT services company.
On the other hand, the European Commission said in October of this year, Oracle did not provide sufficient evidence to dispel the widely expected deal will have a monopoly of the risk concerns. The European Commission’s main concern from the Sun’s MySQL database and Oracle’s database products in the current market leading position. Currently, Sun’s MySQL database is widely used in Google, Amazon and other websites, and Oracle’s database sales in the overall market has been at the leading position. The critics argued that Oracle’s acquisition of Sun will make MySQL’s R & D will be hampered.
U.S. Department of Justice released a statement this week said that even if Oracle completed its acquisition of Sun, the entire market competitiveness and will not be damaged, consumers still have a lot of different products to choose from. This year in August, the U.S. Justice Department has approved Oracle’s acquisition of Sun deal.
U.S. Department of Justice said: “The Justice Department’s antitrust division concluded that Oracle’s acquisition of Sun’s deal will not undermine fair competition in the market.” The department also said that Oracle and Sun should actively communicate with the European Commission in order to as soon as possible to reach agreement on the deal.
In fact, the United States anti-trust approvals, the transaction has been rejected by the European Union’s antitrust division, which is not common, but it did happened. One example is the U.S. anti-trust department in 2000 approved the acquisition of General Electric, Honeywell deal, but in the subsequent 2001, the deal the EU’s antitrust division been to the detriment of fair market competition for the conduct of veto.
Oracle CEO Ellison (Larry Ellison) said recently that, due to the uncertainty of business prospects and the European Commission to investigate the lapse of time, Sun is 100 million U.S. dollars every month rate of loss. Sun released the last Friday of the Quarterly Bulletin revealed that the company’s emergence over the past one quarter, revenue fell 25%. Correspond with this, IBM and Hewlett-Packard and other competitors, then took the opportunity to get through the low-cost strategy as part of Sun customers.
