The Channel logo

News

By | Team Register 28th June 2005 08:54

EC waves through Avnet's Memec takeover

'Relatively small'

The European Commission last week cleared Avnet's proposed £676m takeover of Memec.

The Commission notes that Avnet takes a leading position in semiconductor distribution within the European Economic Area (EEA) with the acquisition. But it says that Memec is relatively small and that competitors - particularly Arrow, the biggest chip distie in the EEA - will be "able to restrain any price increasing behaviour".

And while Arrow and Avnet draw even further ahead of the pack, there is little risk of "collusive behaviour [in a} business where a large number of different products are distributed".

Too right. Since when can IT and electronics products disties control prices - upwards or downwards. Greedy manufacturers, over-supply, endemic unofficial broking and piss-poor margins, means that the flight to size is a defensive not an aggressive posture. ®

alert Send corrections

Opinion

Tim Worstall

Or why the reversal of globalisation ain't gonna 'appen
The full Spanglish breakfast: mealy pudding, bacon, black pudding, sausages, fried egg, toast
Blood image

Trevor Pott

Can the storage giant overcome a lack of necessary leadership?

Chris Mellor

Why overlapping kit from a merger equals a disaster in waiting

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that