EC approves Azlan buy

£139.6m takeover does not raise competition concerns, concludes Commission

Tech Data's proposed acquisition of distributor Azlan for £139.6m has been approved by the European Commission.

The Commission investigated the overlapping networking businesses as well as the market for indirect distribution of data networking products.

It concluded that the move did not raise any serious competition concerns, regardless of whether the market is national or European.

When the acquisition was announced, Azlan said in light of tough economic conditions, an acquisition by Tech Data and its UK subsidiary Computer 2000 (C2000) would safeguard its future.

C2000 was unavailable for comment but has previously said it intended to preserve the Azlan brand.

However, channel players are still waiting to see if the acquisition will change Azlan's business model.

Steve Derbyshire, managing director of reseller Telamon, said the company works with Azlan on a regular basis.

But he added: "My preference is for small distributors because we get a more personal service."