HP-EDS merger gets OK in Europe

A proposed acquisition by Hewlett-Packard of computer services company EDS has won approval from the European Commission.

In May, HP announced it would buy EDS for $25 per share, or $13.9 billion. Under the deal, EDS will operate as a new business unit (called EDS) and will continue to be led by Ronald A. Rittenmeyer, its current chief executive officer. The EDS buy will pit HP squarely against IBM and make it second only to Big Blue in the realm of outsourced computer services.

But the enormity of the merged companies and culture differences between the two groups will make this acquisition challenging, Gartner analyst Ben Pring said at the time it was announced.

The deal won approval from U.S. antitrust authorities on June 30.