The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Horizon Technology Group of Ireland by the US-based company Avnet, both distributors of information technology products. The Commission concluded that the concentration would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Avnet made a $150 million offer in April to acquire Horizon. Avnet distributes electronic components, computer products and technology services and solutions. Horizon, with sales of $455 million last year, is a technical integrator and distributor of information technology products.

Avnet is mainly active in the wholesale distribution of electronic components and computer products and the supply of related services on a global basis. Horizon Technology Group is a technical integrator and distributor of information technology (IT) products and is active in Ireland and the United Kingdom. The parties' customers are typically resellers and retailers of computer products.

The Commission said it examined the effects of the proposed transaction on the market for the wholesale distribution of IT products in the EEA and focussed on the markets for the distribution of servers (and the sub-categories of high-range and mid-range servers) in the UK. Even though the merger would create the strongest player in these markets, the Commission's investigation identified a number of elements which led it to the conclusion that anti-competitive effects are unlikely to occur. A number of other wholesale distributors will exercise competitive constraints on the merged entity as well as manufacturers of IT products and software producers who sell their products directly to resellers and retailers, thus bypassing the wholesalers.

The Commission concluded that even in the narrowest market segments the combination of Avnet and Horizon Technology Group would not give rise to competition concerns.