WASHINGTON, March 13: The US justice department on Friday cleared the way for Coopers and Lybrand and Price Waterhouse to go ahead with a $ 13 billion merger into the world's largest accounting and consultancy firm. Source close to the talks said the European Union will clear it too."The justice department has closed its investigation into the merger of Price Waterhouse and Coopers and Lybrand, clearing them to merge," justice department spokesman Michael Gordon said. "We worked closely with the Europeans on their investigation.
A US source close to the talks said the European Union would issue no `statement of objection' and clear the way for the merger as well. A `statement of objection' would involve a further investigation into the merger.
In Brussels, Belgium, commission spokesman, Stefan Rating called that the report premature, saying: "There will be a meet later on Friday between (commission) officials and (competitition commissioner Karel) Van Miert to decide whether or not to send a statementof objections (to the two companies)." Even if the EC decided not to forward any objections to the planned merger, it would still have to consult with eu national antitrust experts, Rating said.
On Rating's comments, the US source reiterated the EU would, in fact, announce it was not issuing a statement of objection. And that, the soure said, would effectively translatte into a clearance for the merger. The heads of the two firms issued a statement expressing their gratitude and noting they had received no statement of objection yet from the European Union.
"This is a major step forward which moves us that much closer to fulfilling our aim of creating the world's premier professional service organisation," the statement, which was issued in New York, said. "While the commission has not yet reached a formal conclusion we hope to receive unconditional clearance in due course."
The firms must also get approval for their merger in Canada, Australia, Switzerland and South Africa.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
