Qualcomm's proposal to acquire Autotalks requires EU antitrust approval
Before the deal can be finalised, Qualcomm will need to secure EU antitrust clearance, a prerequisite highlighted by the European Commission.
- Republic Business
- 2 min read
Qualcomm acquiring Autotalks: US semiconductor company Qualcomm is set to undergo the process of obtaining EU antitrust approval for its intended acquisition of Israeli automotive chip manufacturer Autotalks, despite the transaction falling below the European Union's prescribed turnover threshold. This development was confirmed by EU regulators on Friday.
The European Commission's decision is rooted in the significance of the deal for original equipment manufacturers (OEMs) and other stakeholders seeking access to vehicle-to-everything (V2X) semiconductors.
Notably, the EU competition authority acknowledged requests from 15 EU member states, including France, Ireland, Italy, the Netherlands, Poland, Spain, and Sweden, to thoroughly review the acquisition.
EU antitrust clearance required
Before the deal can be finalised, Qualcomm will need to secure EU antitrust clearance, a prerequisite highlighted by the European Commission. The transaction brings together two major providers of V2X semiconductors within the European Economic Area (EEA).
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The Commission noted that V2X technology holds a pivotal role in enhancing road safety, managing traffic, reducing CO2 emissions, and facilitating the deployment of autonomous vehicles.
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The Commission's statement underlined the importance of ensuring that customers such as OEMs and infrastructure managers continue to have access to V2X technology at competitive terms and prices.
Qualcomm to focus more on automotive
Qualcomm unveiled its intention to acquire Autotalks in May, aiming to bolster its presence in the automotive sector. However, the company is yet to provide a response to the latest developments in this matter.
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Autotalks specialises in manufacturing specialised chips tailored for the V2X communication technology segment, catering to both manned and autonomous vehicles. The overarching goal of this technology is to enhance road safety and contribute to the broader objectives of the automotive industry.
(With Reuters inputs)