The European Commission has authorised under the EU Merger Regulation the proposed joint venture between the French/Italian group STMicroelectronics and the Dutch company NXP. The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. S
The proposed joint venture would operate worldwide in the research and development, design, manufacture, marketing and sale of wireless handsets. Both STM and NXP are dedicating part of their activities to the joint venture.
The Commission's market investigation revealed that the creation of the joint venture would not give rise to any competition concerns in the market for wireless handset semiconductors as the new entity would face several significant competitors and customers would continue to have access to a sufficient number of alternative suppliers. The Commission also took into consideration the existence of sophisticated customers, such as original equipment manufacturers (OEMs), and the fact that the STM and NXP businesses to be conferred to the joint venture are to a large extent complementary.
More information on the case will be available at: http://ec.europa.eu/comm/competition/mergers/cases/index/m103.html#m_5173