Brussels, 2 nd December 2009
Mergers: Commission approves proposed merger between Renesas Technology and NEC Electronics
The European Commission has approved under the EU Merger Regulation the proposed merger between Renesas Technology, jointly controlled by Hitachi Ltd. and Mitsubishi Electric Corporation, and NEC Electronics Corporation (NEC-EL). All parties to the transaction are headquartered in Japan. The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Renesas and NEC-EL are semiconductor manufacturers. In particular, they both supply microcontrollers for a broad range of applications (e.g. automotive components, portable devices, computer peripherals) as well as LCD (Liquid Crystal Displays) drivers, SRAM (Static Random Access Memory), and other semiconductor products. Microcontrollers are small semiconductor devices that act as the 'brain' of electronic appliances.
There are no significant vertical relationships between the companies and the Commission's investigation focused on horizontal issues.
The Commission's investigation revealed that the proposed merger would not give rise to competition concerns in the markets for microcontrollers, SRAM, LCD drivers and other types of semiconductors, as these markets are characterised by dynamic competition and significant buyer power. In particular, the combined entity would continue to face large and effective competitors.
More information on the case will be available at: