Infineon can acquire Marvell’s automotive Ethernet business

The Bundeskartellamt has today cleared plans by Infineon Technologies AG to acquire the automotive Ethernet business of the US company Marvell Technology, Inc. Marvell’s Ethernet components are primarily used for data transmission within the networks of software-defined vehicles (SDVs).

Andreas Mundt, President of the Bundeskartellamt: “The acquisition of Marvell’s automotive Ethernet business allows Infineon to complement its own product portfolio in this promising market and to strengthen its position. However, our survey of several customers and competitors has shown that the market is characterised by a broad and open field of competitors, product interchangeability due to standardisation, and significant buyer power on the part of original equipment manufacturers and car manufacturers. The proposed merger could therefore be cleared within the one-month deadline of first-phase merger control.“

Infineon is a global provider of semiconductor solutions for a wide range of applications. In the automotive sector, Infineon already manufactures microcontroller units required for SDVs, among other products. The proposed transaction will enable Infineon to enter the automotive Ethernet business in order to expand its product range and develop and manufacture systems for SDVs, particularly for original equipment manufacturers. Although complementing its product portfolio in this way will strengthen Infineon’s competitive position, the Bundeskartellamt’s investigations have shown that the proposed merger will not impair the current competitive situation in the product markets affected as, in particular, there is a sufficient number of competitors.