Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Microsoft's $16 billion Nuance bid gets EU antitrust approval

Published 12/21/2021, 10:27 AM
Updated 12/21/2021, 10:35 AM
© Reuters. FILE PHOTO: A Microsoft logo is seen in Los Angeles, California U.S. November 7, 2017. REUTERS/Lucy Nicholson
MSFT
-
AAPL
-
NUAN
-

BRUSSELS (Reuters) - The European Commission on Tuesday granted Microsoft (NASDAQ:MSFT) unconditional antitrust approval for its $16 billion bid for artificial intelligence and speech technology company Nuance Communications (NASDAQ:NUAN).

The deal is Microsoft's second biggest after its $26.2 billion LinkedIn purchase in 2016, and would boost its presence in cloud services for healthcare.

It has already regulatory approval in the United States and Australia, and Reuters reported earlier this month it was set to receive EU approval.

The Commission said its investigation into the deal had concluded that it would not significantly reduce competition in markets for transcription software, cloud services, enterprise communication services, PC operating systems and other products.

"The proposed transaction would raise no competition concerns on any of the markets examined in the European Economic Area," the Commission said.

U.S.-based Nuance serves 77% of U.S. hospitals and helped launch Apple (NASDAQ:AAPL)'s Siri virtual assistant.

© Reuters. FILE PHOTO: A Microsoft logo is seen in Los Angeles, California U.S. November 7, 2017. REUTERS/Lucy Nicholson

The Commission said it had examined issues including the overlap between Microsoft and Nuance's transcription software activities, and found that they offered "very different products" that, when combined, would continue to face strong competition from other players.

Tech companies have ramped up acquisitions of AI-focused firms as more integrate this technology into their products and services.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.