CCI clears USD 37-bn Avago Tech's acquisition of Broadcom

Fair trade regulator Competition Commission of India has given its nod to the USD 37 billion acquisition of Broadcom Corporation by chipmaker Avago Technologies Ltd.
In May this year, Apple supplier Avago Technologies had announced a deal to acquire global semiconductor solutions provider Broadcom in a cash and stock transaction that values the combined entity at USD 77 billion.
In a tweet, the Competition Commission of India (CCI) has said, "CCI approves acquisition of Broadcom Corporation by Avago Technologies Limited."
Incorporated in Singapore, Avago is a designer, developer and global supplier of a range of analog semiconductor devices. While, California-based Broadcom focuses on semiconductors for infrastructure, networking, broadband and connectivity.

In India, Broadcom has operations at three locations including Hyderabad and Mumbai and Avago has its unit in Bengaluru.
Upon completion of the deal, Avago President and CEO Hock Tan will continue to serve as President and CEO of the combined company, which will adopt the name Broadcom Ltd.

Further, Broadcom Co-Founder and Chairman of its board Henry Samueli will join the board of the combined company as well another director of it. Samueli will also be appointed chief technology officer of the combined company.
According to CCI, the cement companies used the CMA
platform and shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted production and supplies in the market.

It was also found that the companies were acting in "concert in fixing prices of cement" which contravenes competition norms.
Among others, CMA has been asked to disengage and disassociate itself from collecting wholesale and retail prices through member cement companies or otherwise.
The association has also been restrained from collecting and circulating the details relating to production and dispatch by cement companies.
Highlighting the role of trade associations in promoting the interests of their members and the industry, CCI said cement companies were interacting using the platform made available by CMA.
"Such interactions have been found to have transgressed the limits in sharing of information and extended to discussions on cost, prices, production and capacities, thereby, facilitating the enterprises to determine prices and production in a concerted and collusive manner, than in a competitive manner," the release said.

Further, the watchdog cautioned that all those who participate in association activities, whether as a member or an executive or manager or employee, have to be sensitive to "the discussions not transgressing advertently or otherwise into anti-trust behaviour or practices".