Intel to secure EU's okay for $16.7 billion Altera deal: sources
Reuters
Published Oct 09, 2015 02:22PM ET
Intel to secure EU's okay for $16.7 billion Altera deal: sources
By Foo Yun Chee
(Reuters) - World No. 1 chipmaker Intel Corp (O:INTC) will be given the go-ahead from the EU for its $16.7 billion bid for Altera Corp (O:ALTR), its largest ever deal, two people familiar with the matter said on Friday.
The U.S. company is looking to Altera to reinforce its portfolio of higher-margin chips used in data centers and to focus on chips for cars, watches and other devices in a future "Internet of Things."
The U.S. Department of Justice cleared the deal unconditionally last month while other agencies such as the Chinese are also looking at the bid. Analysts had expected smooth sailing but some investors were concerned about possible antitrust hurdles.
The highly fragmented chip industry has seen a wave of consolidation this year as companies beef up their capabilities and try to squeeze more technologies onto chips in response to demand for integrated suppliers.
The European Commission will clear the deal without requiring concessions from Intel as it does not see any competition issues, the sources said. A decision is scheduled by Oct. 14.
Commission spokesman Ricardo Cardoso declined to comment. Intel spokeswoman Cara Walker declined to comment on the regulatory process, saying the company continued to work closely and cooperate with the agencies involved.
Altera makes programmable chips used to speed up web searches and update social networks, among other uses.
The Commission is now examining Avago Technologies' (O:AVGO) $37 billion offer for Broadcom Corp (O:BRCM), the biggest ever deal in the sector. The preliminary review will end on Nov. 9. 2015-10-09T135318Z_1_LYNXNPEB980R3_RTROPTP_1_TAIWAN-COMPUTEX.JPG
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.