RPT-EU conditionally okays Agilent's takeover of Varian

BRUSSELS Jan 21 (Reuters) - U.S. electronics equipment maker Agilent Technologies Inc (A.N) won EU approval on Thursday for its $1.5 billion takeover of Varian Inc VARI.O, a move to boost its fast-growing bioanalytical measurement business.

The EU executive said approval for the deal was conditional on Agilent selling all of its units involved with micro/portable gas chromotography instruments, and also selling Varian's business units involved in the same area.

Agilent's bioanalytical measurement segment has a higher profit margin and is a more stable business than its electronic measurement business. The unit accounted for just under half of the company's sales in the second quarter of 2009.

The Varian deal will boost Agilent's product offerings in the life sciences and environmental sectors and pave its expansion into new markets such as nuclear magnetic resonance imaging. The acquisition was announced in July last year.

Both companies have agreed to carry out the divestments demanded by the Commission to secure approval.

"In view of the remedies offered, I am satisfied that the merger of two major global players will not hinder effective competition in the analytical instruments field," Competition commissioner Neelie Kroes said in a statement.

Agilent competes with PerkinElmer Inc (PKI.N), Thermo Fisher Scientific Inc (TMO.N), Waters Corp (WAT.N) and Life Technologies Corp (LIFE.O) in the bioanalytical business.