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Google-Motorola Deal Approved By Chinese Authorities

Business & GovernmentNews
by Radu Tyrsina, 21 May 2012News

Earlier this year, Google's decision to merge with Motorola was approved by the European Commission and the US Department of Justice. Now, the Chinese authorities have approved Google's $12.5 billion (£7.9 billion) purchase of Motorola Mobility.

The Chinese legislation requires that every company selling products or services worth more than $63 million on the local market, or $1.5 billion worldwide, should be granted approval from the Chinese Ministry of Commerce.

Motorola Mobility confirmed the good news for Bloomberg's reporters. "We are pleased the deal has received approval in all jurisdictions," said the company representatives.

"We expect to close imminently," they added. Google's officials said the deal "has not changed" and they are looking forward to complete the acquisition.

Analysts pointed out that Google is only interested in Motorola for its huge patent wealth that will prop up the Android platform. Larry Page, Google co-founder and CEO, confirmed that his company needs Motorola in order to "better protect Android from anti-competitive threats from Microsoft, Apple and other companies.".

He also stated that Google intends to further invest in Motorola after the acquisition is complete and isn't planning to sell it. 

Source: Bloomberg

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