It has been announced today that the US Justice Department has given its approval for Oracle the business software firm to takeover Computer hardware/software maker Sun Microsystems.

The business originally agreed a takeover with IBM which fell through as there were talks of competition law violations, the deal breaker came about as IBM decided to  lowered its valuation.

As a result Oracle a business software firm made their move on Sun – excited about the fact that they could finally compete more intensely with IBM and HP, by snapping up Suns two important pieces of software Java and Solaris operating system, which are both widely used throughout the world.

Some feel that the takeover would be a sad end of a 27 year era for Sun who are selling for a cut price $5.6 Billion instead of the $200 Billion it was worth just over 10years ago.  However although it marks a sad day for Sun’s fortune, Sun’s chairman Scott McNeadly s commented that the takeover will mean a “momentous day” in the technology world – redefining the industry.

Deal or no deal?

The deal might sound set in stone, however the European Commission office has 25days to review the deal to decide whether it meets the guidelines set out in the European Union Merger Regulations – or open a 90day further investication.  The first report will be published on the 3rd of September 2009.

 The combination of Oracles takeover of Sun will bring greater benefits for the end user giving a complete package “from database to desk” making all of the technological pieces fit in perfectly. The decision therefore lies in the hands of the commission’s findings, so this will be an interesting case to follow.