adi-bok came one step closer to reality last week after adidas-Salomon AG reported that its proposed €3.1 billion (U.S. $3.8 billion) acquisition of Reebok International Ltd. had survived the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Regulatory scrutiny now shifts to Brussels, Belgium, where the deal will be reviewed by the European Commission. A recent article on TheDeal.com suggested that adidas had not yet filed for the EC review, but were talking to regulators before doing so.

Based on the merger agreement filed with the SEC, adidas must divest licenses or product lines with revenue of up to $400 million for either 2004 or 2005 if necessary to win antitrust clearance. Reebok is apparently eligible for a $75 million fee from adidas if they fail to close the merger over antitrust issues.

TheDeal said that the projected early 2006 closing date for the deal suggests that they expect a four-month, phase two competition review by the EC.

In other adidas news, the company will partner with Microsoft’s Xbox brand on a number of marketing initiatives, entering a long-term strategic alliance at X05, the Microsoft Xbox brand experience for the games and entertainment industry. The broad deal calls for the placement of Xbox 360 kiosks in adidas stores across the world leading up to the FIFA 2006 World Cup. The two brands will also partner on support for an MTV series focusing on promising young soccer stars and a series of cross-promotional exercises for a movie. Xbox will also have kiosks at all adidas grassroots soccer events in the lead up to the World Cup.