The European Commission last week cleared (http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/794&format=HTML&aged=0&language=EN&guiLanguage=en) Avnet's proposed £676m takeover (http://www.avnet.com/prl/home/0,1965,RID%253D0%2526CID%253D22606%2526CAT%253D%2526CCD%253DUSA%2526SID%253D9358%2526DID%253DDF3%2526LID%253D9368%2526PRT%253D%2526PVW%253DN%2526intY%253D%2526TYP%253DCO%2526BID%253DDF3%2526CTP%253DPRL,00.html) 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. ®