TomTom says Tele Atlas merger held up by EU investigation

TomTom has extended its offer for mapping company Tele Atlas until May 30 while it awaits the outcome of an investigation by the E.U.'s antitrust authority

TomTom's acquisition of mapping company Tele Atlas has dragged on longer than expected, held up by an investigation by the European Union's antitrust authority, which must approve the merger. TomTom has extended its offer for another two months.

The European Commission announced in late November that it would examine whether TomTom acquiring Tele Atlas would have an adverse effect on competition in the market for GPS navigation devices, saying it expected to complete its investigation by April 17.

However, on Thursday TomTom said it now expected that investigation would not be complete until May 21, and announced it would extend its offer for Tele Atlas until May 30.

Despite the delay, TomTom and Tele Atlas said they remain confident that the Commission will approve the deal.

TomTom initially offered Euro 2 billion (US$3.2 billion) for Tele Atlas in July, raising its offer to Euro 2.9 billion in November after a rival bid of Euro 2.3 billion from navigation device maker Garmin. Meanwhile, Tele Atlas's main rival in the mapping business, NavTeq, had been snapped up for US$8.1 billion by Nokia, which is increasingly incorporating GPS receivers into its mobile phones.

Although TomTom and Tele Atlas are in different markets — TomTom makes navigation devices and Tele Atlas supplies mapping data — many of TomTom's competitors rely on information from Tele Atlas, which has few competitors. The Commission expressed concern that the price of navigation devices could rise if TomTom were to control the price its competitors paid for mapping data.

Upon receiving word of the timetable for the Commission's inquiry, TomTom extended its tender offer for Tele Atlas's shares until March 31, assuming the investigation would be completed by then.

As the deadline approached with no end to the investigation in sight, though, TomTom was forced to extend its tender offer. TomTom said it may extend the offer again if the Commission has still not reached a decision by May 30.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service
Show Comments

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?