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TomTom NV, Europe's largest maker of car-navigation devices, has won permission to buy the digital-mapping company Tele Atlas NV. Six month's ago, TomTom announced its intention to acquire TeleAtlas for an astonishing E2.9 billion ($4.5 billion).

The decision has taken six months because of negotiation over a demand by the European regulator that TomTom licence the TeleAtlas database. This would create more competition by weakening TomTom's ability to withstand competition from Garmin.

The investigation also focused on whether the deal would make it more expensive for other makers of navigation devices to purchase maps. However, regulators have decided the deal should go ahead because it was driven by competitive pressures from outside Europe.

TomTom competes directly with Garmin in the market for personal navigation devices. TeleAtlas competes directly with Navteq in the supply of maps for such devices.

The decision probably also implies that regulators will approve Nokia's $8.1 billion purchase of Navteq Corp, the world's largest maker of digital maps.

ASM Newsletter is distributed by e-mail every two weeks. It reports on events in the spatial industry in Asia and events outside the region which will impact on Asia.