Report: EU to Clear $37B Avago, Broadcom Deal

U.S. chipmaker Avago Technologies is set to win unconditional approval by the European Union's competition regulators for its proposed $37 billion takeover of Broadcom, two people familiar with the matter said on Tuesday.

The deal is one of several in the global semiconductor industry this year, with consolidation driven by demand for cheaper chips and new products to power Internet-connected gadgets as well as the need to cut costs.

Avago offered concessions last Friday, according to the European Commission website, without providing details.

However, such concessions will likely not be necessary, the people said.

Avago serves the wireless and industrial markets while Broadcom's chips are used widely in smartphones made by Apple and Samsung Electronics.

European Commission spokesman Ricardo Cardoso declined to comment. The EU competition authority extended its deadline for a decision on the deal to Nov. 23 from Nov. 9. U.S. regulators nodded through the takeover in August.

Avago and Broadcom did not immediately reply to emails for comment.

Since taking over Singapore and San Jose, California-based Avago nine years ago, Chief Executive Hock Tan has developed the company via a series of acquisitions, with Broadcom his biggest buy to date.

The merged company will be based in Singapore and known as Broadcom.

(Reporting by Foo Yun Chee; Editing by Keith Weir, Greg Mahlich)