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

Peter Sayer

IDG News Service
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

Family Friendly

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Stocking Stuffer

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?