General Electric is likely to have to wait until September for the European Commission's verdict on its $2.1 billion (€1.8 billion) takeover of Instrumentarium, the Finnish medical products company.

The Brussels authorities, which scuppered the group's $42 billion bid for Honeywell in 2001, have called a halt on their investigation of this latest deal.

The Commission had been due to rule by August 18th, but GE said it was still confident it could meet its deadline of closing the deal by the end of September. "The delay is not surprising. We have provided an enormous amount of information," GE said yesterday.

It emerged that Mr Mario Monti's competition staff "stopped the clock" on the intensive four-month investigation in mid-April after asking the companies for more information on the medical products market.

The delay will affect any formal "statement of objections" sent by the Commission, which could ask the companies to make significant divestments.

Under EU rules, the Commission can suspend an investigation into a merger if the companies fail to fully to comply with a formal request for information.

"The companies have already provided part of the information," the Commission said in a statement.

"As soon as the outstanding information has been received the Commission will set a new deadline."

Formal requests for information are relatively rare during the intensive phase of a merger inquiry and could signify that the Commission is seeking to bolster a flagging case, or that it is looking to crack down on a specific area.

The Commission is also sensitive not to be seen as anti-American, particularly after its controversial decision to block GE's bid for Honeywell, which GE is appealing.

In addition, Mr Monti's staff is treading carefully after losing an unprecedented three merger cases before the European Court of Justice last year. - (Financial Times Service)