You are here: silicon.com > Management > Law & Policy

Law & Policy

Oracle-Siebel mega-merger gets EC green light

Ellison can thumb his nose at Gates...

Tags: oracle. ellison, ec, siebel, oracle

By Dawn Kawamoto

Published: 22 December 2005 15:45 GMT

European Commission officials gave their blessing on Thursday to Oracle's $5.8bn merger with Siebel Systems, removing the last major antitrust hurdle for the enterprise software companies.

The EC declined to challenge Oracle's mega-merger with Siebel Systems, a move that had been anticipated by industry watchers.

The green light from European antitrust regulators stands in stark contrast to their response to Oracle's acquisition of another archrival, PeopleSoft.

The commission said in a statement: "After examining the operation carefully, the Commission concluded that the transaction would not significantly impede effective competition... and has therefore approved the concentration."

The EC noted that the only area the two enterprise software vendors face overlap is in customer relationship management (CRM) software, a fragmented market, according to the EC's statement.

The EC stated: "The Commission also examined possible conglomerate effects. Widely used open standards make it unlikely that the merged entity would impose restrictions on newly acquired Siebel's CRM customers, as regards to their use of non-Oracle databases."

The green light from European antitrust regulators stands in stark contrast to their response to Oracle's acquisition of another archrival, PeopleSoft. Both the EC and the US Department of Justice raised concerns about the takeover when it was proposed. After 18 months of hostile manoeuvring to acquire PeopleSoft, however, Oracle ultimately prevailed.

With its last antitrust hurdle cleared in the Siebel deal, Oracle now awaits approval from the Securities and Exchange Commission. Oracle executives previously indicated they expected the merger to close in the first quarter, as early as mid-January.

Despite generating less controversy than the PeopleSoft deal, Oracle's pending acquisition of Siebel has not been without drama.

Oracle executives at one point were in buyout discussions with Siebel while also trying to land the PeopleSoft deal.

And the Department of Justice, which lost its court challenge in the PeopleSoft case, expressed a desire to take a more in-depth look at the Siebel merger, before ultimately allowing it to proceed.

Dawn Kawamoto writes for CNET News.com

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure

Mark Crichard Doing business with citizen developers: Beware the legal pitfalls Legal Eye: Make sure your business is protected from potential hazards

Tim Ferguson How CIOs can achieve post-recession success Q&A: McKinsey & Company on living in the 'new normal' business world


  • Jobs
New Business Sales Executive - IT Managed Services - London

Depending on experience and package, you will be working toward G.P targets between 20-40K per month and rewarded with one of the most generous ...

Accountancy Recruitment Consultant - Legal or Media Clients

Your initial responsibility will be the further development of a client portfolio; this will be achieved through the acquisition of new business and ...

Graduate calibre candidates / Sales Executives / Trainee Recruitment Consultants

Salary 16k basic with excellent uncapped commission structure – (1st year OTE 35 - 40k) + career progression + ongoing training and development ...

Agenda Setters 2009
Welcome to the ninth annual Agenda Setters poll – silicon.com's list of the top 50 most influential individuals in the technology and IT industries, from techies and CIOs to entrepreneurs and business leaders. Find out more in our latest special report.





Quick Sitemap Links: