Electronics Production |
Flextronics gets green light<br>by EU to buy Solectron
evertiq.com reported earlier that the biggest EMS-deal in history between Flextronics and Solectron could sink in the sea if the EU commission decides that Flextronics/Solectron will be too big in Europe. However EU has now give Flextronics permission to buy Solectron.
Flextronics will buy Solectron for $3.6 billion in cash and stock. The EU competition said its review "showed that the combined share of the two companies on the EMS market, at the Europe and worldwide levels, would be limited", Reuters reports.
EU also announced that Flextronics and Solectron would face "many vigorous competitors with significant market shares."
In July Flextronics get OK by the US antirtust laws on the acquisition of Solectron. Flextronics makes products ranging from mobile phones for Sony Ericsson to Xbox game consoles for Microsoft Corp. to printers for Hewlett-Packard Co. and Solectron customers include Alcatel-Lucent and IBM. Mutual customers include Cisco, Motorola, Ericsson and Nortel Networks Corp.
