E.U. regulatory clearance for some heavy transactions makes headlines this afternoon.
Having gained European regulatory clearance, the Netherlands No. 1 construction company, Koninklijke BAM Groep NV, is on track with plans to close its $1.1 billion acquisition of Dutch real estate developer AM NV.
In a related deal, regulators approved a plan for U.S. investment bank Morgan Stanley to acquire AM’s property division, AM Development BMV, for $499 million.
Another deal likely to involve no regulatory opposition is the pending $1.9 billion acquisition of Milpitas, Calif.-based Maxtor Corp. by its rival hard drive maker Seagate Technology Inc.
Scotts Valley, Calif.-based Seagate is the No. 1 supplier in the disk drive business, controlling more than 30% of the market. Tremendous competition in the disk drive market, coupled with the elimination of Maxtor, the No. 3 maker in the U.S., could be a significant development for smaller competitors looking to gain a piece of the pie.
The companies expect the merger to close in the second half of 2006. —Carolyn Murphy
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