CCS clears Texas Instruments’ acquisition of Silicon Labs

The deal is unlikely to lessen competition across semiconductor markets. 

The Competition and Consumer Commission (CCS) has cleared Texas Instruments’ proposed acquisition of 100% of Silicon Laboratories’ issued and outstanding shares after finding that the deal is unlikely to substantially lessen competition.

The regulator concluded that the affected markets are likely to remain competitive, noting that the groups are not each other’s closest competitors.

It also found that coordinated conduct would be unlikely because of the number of competing suppliers and the use of individually negotiated pricing arrangements.

CCS further said the merged company is unlikely to have sufficient market power to foreclose competitors.

Both groups supply semiconductor products used in a range of applications, including remote keyless entry systems for cars, continuous glucose monitors, power tools, electronic door locks and touch panels.

The regulator assessed the impact of the transaction across five semiconductor product markets: wireless connectivity system-on-chips, non-wireless microcontroller units, power management integrated circuits, sensors, and universal serial bus bridges.

It examined whether the combined company could raise prices, reduce product quality, or limit customer choice following the acquisition.