Brussels, 29/08/2007 (Agence Europe) - On Wednesday 29 August the European Commission approved the proposed acquisition of Solectron Corporation (USA) by Flextronics International Ltd. (Singapore). Both companies are providers of electronics manufacturing services at a global level. After examining the operation carefully, the Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it.
The Commission's examination of the transaction showed that the combined share of Flextronics and Solectron on the EMS market, at both EEA and worldwide levels, would be limited and that, the combined firm would continue to face many vigorous competitors with significant market shares. Furthermore, the Commission's market investigation confirmed the existence of perfect supply-side substitutability in this sector, i.e. the ability of all EMS suppliers to produce products for different segments/applications (e.g. computers, consumer goods...), as well as the existence of significant buyer power, with powerful customers able to readily switch between alternative suppliers. (ol)