HP's $3 bln purchase of 3Com wins EU approval

BRUSSELS, BELGIUM: U.S. technology giant Hewlett-Packard Co won approval from EU competition regulators on Friday for its takeover of 3Com Corp, reinforcing its presence in the network equipment market.

HP agreed in November to pay $3 billion for network equipment maker 3Com, aiming to expand its product portfolio, boost sales in the fast-growing Chinese market and better compete with Cisco Systems Inc.

Technology companies such as IBM and Oracle Corp are rapidly transforming into one-stop shops for computing, networking and data storage.

The European Commission concluded the deal "would not significantly impede effective competition" in Europe, it said in a statement.

The deal was cleared without any concessions required from the companies, confirming a Reuters report on Wednesday.

HP, the world's biggest technology company by sales, has said it expects to close the deal early in the fiscal second quarter. It has acquired more than 30 companies since 2005.

Analysts expect the acquisition spree to continue, reinforcing the firm as an all-round provider of technology products and services.