By ReutersInformationWeek
No formal statement of objections from the European
Commission has been delivered to mobile phone giant Nokia and
none is coming, the sources said. Under the law, the Commission
may not block a deal without such a statement.
The time for sending any statement of objections has passed,
according to these sources, which include industrial sources.
The deadline for a decision by Brussels is Aug. 8. The lack
of a statement of objections does not preclude the possibility
that the transaction will be approved conditionally.
"The Commission never comments on ongoing merger cases," a
spokesman for the European Union's executive arm said.
A spokesman for Finland's Nokia said: "We cannot comment on
the details but we are committed for the deal to go through."
Nokia has said the talks were progressing well and had been
constructive.
The deal is a cornerstone of Nokia's new push towards
Internet services, where it expects to benefit from close access
to maps.
When Nokia announced the deal last October, it said it would
finance about half the transaction from cash reserves and half
from the financial market. Nokia expects the deal to close this
quarter.
Nokia has said it received all other necessary approvals for
the deal from other sources, including the United States.
TomTom, the world's top maker of car navigation devices, won
permission from the European Commission in May to buy digital
map supplier Tele Atlas.
In questionnaires, the Commission has told customers and
competitors that the two deals resemble each other in some ways.
However, the Commission has also said there were significant
differences between the two deals.
In addition, Nokia was facing changed market conditions
because Navteq's only world competitor had been acquired.
(Editing by Dale Hudson)
By: David Lawsky and Tarmo Virki
Copyright 2008 Reuters. See original article on InformationWeek
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