Oracle, a larger competitor in the market for enterprise software, has been trying to buy PeopleSoft in a hostile takeover valued at $6.3 billion – but previously made clear that it did not want JD Edwards thrown into the bargain.
However, PeopleSoft and JD Edwards said in a joint statement yesterday that they have now received antitrust clearance for PeopleSoft's proposed acquisition of all of JD Edwards' outstanding shares in the form of early termination of a statutory required waiting period.
"The Department of Justice's decision to grant early termination is great news," said PeopleSoft President and CEO Craig Conway. "This is a very important milestone and clears the way for the JD Edwards acquisition to be completed."
Oracle responded to yesterday's news by extending its previously announced offer for all of the common stock of PeopleSoft to 15th August. Its offer had previously been set to expire on 18th July.
Oracle spokesman Jim Finn said, "We are extending our offer for PeopleSoft and we remain fully committed to acquiring PeopleSoft, with or without JD Edwards."
An acquisition of PeopleSoft is more likely to raise antitrust concerns; although Oracle is confident that it can pass this test because, even with PeopleSoft and JD Edwards, the combined company would still come second in the enterprise software market, behind SAP.