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Device operating systems

China Holds Up Google-Moto Deal

Google (Nasdaq: GOOG)'s $12.5 billion acquisition of Motorola Mobility LLC has been delayed as China's competition authority has extended its review of the proposed deal.

In a filing with the Securities and Exchange Commission (SEC) on Monday, Motorola revealed that the Anti-Monopoly Bureau of the Ministry of Commerce People’s Republic of China (MOFCOM) has prolonged the second phase of its investigation of the pending transaction.

The deal is now expected to be completed during the first half of 2012, but, as noted in the SEC filing, "Motorola Mobility and Google can provide no assurances as to whether or when the transaction will receive clearance by MOFCOM."

Why this matters
China's approval is the last hurdle for Google's acquisition of Motorola Mobility, and MOFCOM's extended review will delay that. When the acquisition was announced in August last year, the companies said they expected the transaction to close by the end of 2011 or in early 2012. The U.S. Department of Justice , the European Commission and other authorities have already given their approval. (See DoJ OKs Google-Moto Deal.)

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— Michelle Donegan, European Editor, Light Reading Mobile

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