The European Commission yesterday gave its go-ahead for IBM’s $5bn takeover of Canadian business intelligence software maker Cognos. Cognos will become part of IBM’s fast-growing software business division.
The EU said that because IBM also uses software products to prospect for consulting services and hardware, the horizontal overlap between the parties’ activities would not give rise to competition concerns, since the parties’ combined market share would be moderate.
The EU also concluded that The combined IBM/Cognos entity would continue to face several strong competitors and customers would find sufficient alternative suppliers of such software products.
The deal had already been approved by the US Federal Trade Commission last December.