European Commission Approves Intel Acquisition of McAfee
Jan 27th 2011 6:30PM
Updated Jan 28th 2011 8:26AM
The Commission had been concerned that the deal would end up excluding competing security software from operating with Intel processors, but -- as part of the conditions for merger approval -- Intel agreed to make sure its products would continue to work with rival software.
"The commitments submitted by Intel strike the right balance, as they allow preserving both competition and the beneficial effects of the merger," Joaquín Almunia, the Commission's vice president in charge of competition policy, said in a statement. "These changes will ensure that vigorous competition is maintained and that consumers get the best result in terms of price, choice and quality of the IT security products."
Last August, Intel agreed to pay $48 a share for McAfee. At the time, the company said the transaction could close as early as the end of 2010. The deal could boost revenue for the world's biggest chipmaker, whether it sells McAfee software separately or integrates the software into its processors.
Intel shares were unchanged by the news, closing at $21.75 in Nasdaq trading Thursday. McAfee shares fell 0.13% to close at $47.88 on the New York Stock Exchange.