IP/10/389
Brussels, 30 March 2010
Mergers: Commission approves proposed acquisition of Samsung Digital Imaging by Samsung Electronics
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the South Korean cameras manufacturer Samsung Digital Imaging Co, Ltd (SDIC), by the South Korean consumer electronics producer Samsung Electronics Co, Ltd (SEC). After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
SEC is active worldwide in the manufacturing of household appliances, mobiles phones and communication systems, semiconductors and LCD display panels. In particular, SEC sells memory semiconductors; including Dynamic Random Access memory semiconductor chips (DRAM) and flash memories which are incorporated, inter alia, into digital cameras. SDIC specialises in the production of digital still cameras and is active worldwide.
The Proposed Transaction gives only rise to a structural vertical link between the parties in relation to two types of memory semiconductors: Dynamic Random Access Memory semiconductor chips (DRAM) and flash memories.
Following the market investigation, the Commission found that the new entity will not be in a position to limit access to these memory semiconductors for digital cameras competitors of SDIC given the presence of numerous alternatives in the memory semiconductors markets and the fact that memory semiconductors can be used in various applications outside cameras.
Therefore, the Commission found that the proposed transaction does not raise competition concerns.
More information on the case will be available at:
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_5804
