The European Commission (EC) outlined intentions to examine a proposed acquisition of Israel-based automotive chip company Autotalks by Qualcomm, following requests by 15 member states.
Countries including France, Italy, Spain and the Netherlands asked the EC to investigate the deal under EU Merger Regulations laws, meaning Qualcomm will now to have to secure approval before it is able to close the tie-up.
Qualcomm struck a deal to acquire Autotalks in May for an undisclosed sum. The Israeli company makes chips which help prevent vehicle crashes.
The US chip giant intends to integrate Autotalks’ vehicle to everything (V2X) technology into the Qualcomm Technologies’ Snapdragon Digital Chassis portfolio, as it targets growth in the electric vehicle and autonomous driving sectors.
In a statement, the EC explained the transaction would combine the two main suppliers of V2X semiconductors in the European Economic Area, with the technology key to improving road safety, traffic management and reducing CO2 emissions.
“It is therefore important to ensure that customers such as original equipment manufacturers or infrastructure managers retain access to V2X technology at competitive prices and conditions.”