TomTom wins EU approval for Tele Atlas acquisition

TomTom wins EU approval for Tele Atlas acquisition
TomTom and Tele Atlas today have announced that they have received unconditional clearance from the European Commission for the proposed acquisition by TomTom of Tele Atlas.

This merger "would not significantly impede effective competition” stated EU Competition Commissioner Neelie Kroes. "The satnav market is important for consumers. After thorough investigation, I am now satisfied that the innovation and competition we have seen in satnavs until now will continue after this merger and that consumers will continue to benefit from new and innovative products."

“The ruling of the EC is the best possible outcome for TomTom and Tele Atlas allowing the new combination to go ahead with the full execution of its strategy” said the press release of TomTom.

Through this acquisition TomTom special features such as Map Share (enabling TomTom’s installed base of nearly 20 million to contribute to digital map creation and maintenance), TomTom IQ Routes (a database of actual speeds driven on roads gathered from anonymous GPS traces contributed by tomTom’s users) and TomTom HD Traffic (based on cell phone probes) will contribute to the Tele Atlas map data.

TomTom expects this “additional incremental data from TomTom will allow Tele Atlas to introduce new features such as more frequent map updates. Superior, cost efficiently created content will enable Tele Atlas to further strengthen its market position in the rapidly growing worldwide market for digital maps and to grow its addressable market by investing cost synergies in increasing global coverage”

The acceptance period for Tele Atlas shareholders to commit to the offer ends up on May 30.

Wednesday, May 14th 2008

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