Authority approves takeover of software firm

The Competition Authority has approved the proposed acquisition of Brooks Automation's software division by Applied Materials.

The two US companies, which are listed on the Nasdaq, are involved in the development, manufacture, marketing and servicing of software for the worldwide semiconductor industry.

The authority received notification of the proposed acquisition on December 1st, 2006 and, under the Part 3 of the Competition Act 2002, had to determine whether the proposed acquisition would "substantially lessen competition" in markets for goods or services in the State.

Both companies are involved in the supply of software applications in the State. Applied Materials is the world's largest maker of semiconductor production equipment and its key customers include Intel and Motorola, both of which have operations here.

On December 21st last, the Competition Authority announced its decision to carry out a full, or phase two, investigation into the proposed acquisition. This decision came after a preliminary investigation where it had been unable to conclude that the transaction would not substantially lessen competition.

The Competition Authority has now cleared the acquisition in Ireland. The proposed acquisition had been notified in a number of other jurisdictions including China, Germany, Korea, Taiwan and the US.