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Spurred by demand for cheaper chips and new products to power
Internet-connected gadgets as well as the need to cut costs, the
global semi-conductor industry has seen a wave of consolidation
this year, with the Avago, Broadcom deal among the biggest.
The European Commission said it had some initial concerns, but
these were dispelled after Avago agreed to let other switch
chipmakers have continued access to essential intellectual
property on reasonable terms.
This meant no concessions were required from Avago despite a
preliminary offer, the EU competition authority said, confirming
a Reuters story on Nov. 3.
"Thanks to very good cooperation with the companies the
Commission has been able to approve this multi-billion dollar
takeover within a very short space of time while preserving
effective competition in this crucial high technology sector,"
European Competition Commissioner Margrethe Vestager said.
Avago serves the wireless and industrial markets while
Broadcom's chips are used widely in smartphones made by Apple
and Samsung Electronics
(Reporting By Foo Yun Chee and Philip Blenkinsop)
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