EC clears Oracle’s purchase of Siebel

Oracle Corp has obtained clearance from the European Commission regarding its $ 5.85 billion purchase of Siebel Systems Inc. The Commission has stated that the acquisition will not have the deletrious effect of hurting healthy competition. Oracle’s acquisition of Siebel is partly to overtake SAP in the field of business applications software. According to the commission, the deal is unlikely to lead to a conglomerate effect and the existing customers of Siebel will continue to use the Siebel CRM software.

Oracle has undertaken five acquistion projects in the past one year and has spent around $ 17.6 billion. The acquistion could result in Oracle sreamlining its operations and many of the 5000-strong Siebel workforce could lose their job.