EC Statement: Mergers - Commission approves proposed acquisition of ADC Telecommunications by Tyco Electronics
( December 7, 2010, 08:20 GMT | Official Statement) -- MLex Summary: The European Commission has cleared Tyco Electronics’ planned acquisition of ADC Telecommunications. Both companies are manufactures and suppliers of telecommunications equipment to telecoms carriers and enterprises worldwide.The European Commission has approved under the EU Merger Regulation the acquisition of ADC Telecommunications of US by Tyco Electronics of US. After examination, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Both Tyco and ADC manufacture and supply telecommunications equipment for telecoms carriers and enterprises worldwide. The parties' activities overlap with regard to (i) passive equipment and accessories for carrier networks and (ii) structured cabling and hardware for enterprise networks.
The Commission's investigation showed that within those two sectors the parties' product portfolios were largely complementary. The Commission also found that the combined entity will continue to face large and effective European competitors together with increasing competition from Asian suppliers. Moreover, the affected markets are bidding markets with sophisticated buyers. The Commission therefore concluded that the merger will not give rise to competition concerns.
The transaction did not meet the thresholds of the Merger Regulation, but was referred to the Commission for review following a request from the merging parties.
The transaction was notified to the Commission on 28 October 2010....
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