July 6, 2020 / 1:15 PM / a month ago

AMS gains EU antitrust clearance for 4.6 billion euro Osram buy

BRUSSELS (Reuters) - Austrian sensor producer AMS (AMS.VI) (AMS.S) on Monday gained unconditional EU antitrust approval for its 4.6-billion-euro ($5.2 billion) acquisition of German lighting group Osram (OSRn.DE), its biggest ever deal.

The European Commission said the deal would not significantly reduce head-to-head competition between the companies in the markets for optical semiconductors because of the companies’ low-to-moderate market share and other rivals in the industry.

The EU competition enforcer said fast product turnover and sophisticated buyers meant the companies do not exert significant market power, confirming a Reuters report on June 26.

It said the combined entity would not control enough of the market to restrict rivals’ access to essential inputs.

AMS supplies Apple (AAPL.O) with sensors for its iPhones and the Osram acquisition will also help it reduce its dependence on the U.S. firm, its biggest customer.

AMS said it expects to close the deal on July 9 and Osram said the deal would allow the companies forge a world-class photonics and sensor champion.

Reporting by Foo Yun Chee, additional reporting by Kirsti Knolle in Vienna; editing by Gabriela Baczynska and Barbara Lewis

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