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

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

Roll up, roll up, get your exclusive market insights
Wile E. Coyote goes over the edge again
money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals
Angus Highland cow
Pet carriers not wanted for whitebox stampede