EU sanctions Avnet-Bell merger

European Commission rules that $594m deal will not stifle competition in Europe, including in UK and Dutch strongholds

The EU found that the proposed acquisition would not give rise to competition concerns

Avnet’s acquisition of Bell Micro has received EU clearance after it was concluded that the likes of Ingram Micro, Arrow and Tech Data would provide sufficient competition to the enlarged firm in Europe.

The European Commission examined the effect the $594m (£392m) deal, announced in March, would have on the IT distribution market in the European Economic Area.

It was particularly concerned with Avnet’s position in the UK and Dutch server and data storage markets, “where the combined entity’s position would be strong”.

However, the Commission was satisfied that Avnet would continue to face competitive constraint from numerous distributors, including heavyweights Arrow, Ingram Micro and Tech Data, as well as smaller distributors.

It stated: “Given the competitive constraint exerted by alternative distributors and IT manufacturers, the Commission found that the proposed acquisition would not give rise to competition concerns, including in narrow market segments.”