EU conditionally approves Agilent's buyout of Varian

(BRUSSELS) - The European Union's competition watchdog on Thursday approved US high-tech group Agilent Technologies' takeover of Varian Inc., a rival American maker of scientific instruments.

Agilent and Varian have offered to sell off bits of their business to secure final approval in Europe.

"In view of the remedies proposed, the (EU) commission has concluded that the operation would not significantly impede effective competition in the European Economic Area or any substantial part of it," the EU's executive arm said in a statement.

"I am satisfied that the merger of two major global players will not hinder effective competition in the analytical instruments field and that consumers... will therefore not be harmed," said EU Competition Commissioner Neelie Kroes.

The proposed merger will bring together two close competitors in the laboratory instruments market, leaving the combined entity with "significant market shares," according to the commission.

Agilent announced last July an agreement to purchase Varian for 1.5 billion dollars (1.07 billion euros at current exchange rates).

The boards of directors of the two California-based companies approved the all-cash purchase which establishes Agilent as a clear market leader.

Agilent's bio-analytical measurement business allows customers to identify, quantify and analyse the physical and biological properties of substances and products.

Varian makes scientific instruments and vacuum technologies for life science, environmental, energy, and applied research and other applications.

Palo Alto-based Varian employs some 3,600 people worldwide and had revenue of one billion dollars in fiscal 2008.