Semiconductor company Avago Technologies is set to receive unconditional approval from the European Union’s competition authority to acquire rival Broadcom for $37 billion, according to Reuters.
Avago offered certain concessions last week, the European Commission’s website noted without providing details, but the sources quoted in the report say the concessions may not be necessary.
The EU competition authority extended its deadline for a decision on the deal from 9 November to 23 November. US regulators gave the green light to the deal in August.
In terms of market capitalisation, the companies are not dissimilar in size. While Avago is smaller in revenue terms, it is faster-growing.
Broadcom is active in a number of markets, including wireless technology products such as Wi-Fi, Bluetooth and NFC, but in the face of tough competition it opted to wind-down its cellular baseband business. Its chips are used in Apple and Samsung smartphones.
Avago also addresses the wireless market with a “wide range of RF semiconductor devices that amplify, as well as selectively filter, RF signals”. It is also active in the wired and enterprise storage markets.
The merged company will be based in Singapore and known as Broadcom.
The semiconductor sector has seen a wave of consolidation in recent times as companies look for new avenues to increase revenue. Dialog Semiconductor agreed to acquire Atmel for $4.6 billion while Intel is close to agreeing a $17 billion takeover of chipmaker Altera.