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21 December 2009
The European Union (EU) has approved the proposed acquisition of US staffing firm MPS Group Inc. (MPS:NYQ) by staffing giant Adecco (ADEN:VTX) of Switzerland, Handelszeitung reports.
The EU concluded that the overlaps between Adecco and MPS are limited in most member states.
The only significant overlaps occur in the provision of temporary employees in the IT, legal and financial sectors in the UK. However, these were deemed not significant enough due to sufficient competition in the marketplace and low barriers to entry and expansion.
Adecco, the world's largest staffing group, had announced the intended takeover of MPS in October this year for the amount of approximately 1.3 billion US Dollars.
The acquisition is expected to strengthen Adecco's market position in the US, Canada and the United Kingdom. It will also improve Adecco's business mix by increasing the provision of specialist staff from the current 20% to 25%.
In early trading Adecco shares were up by 0.89% to 56.45 Swiss Francs.