Avago secures unconditional EU approval for $37 billion Broadcom buy

A sign is seen at the entrance to the headquarters of Avago Technologies in San Jose, California May 29, 2015. REUTERS/Robert Galbraith

BRUSSELS (Reuters) - European antitrust regulators cleared on Monday Avago Technologies Ltd's planned $37 billion (£24.4 billion) takeover of rival chipmaker Broadcom Corp without conditions.

Spurred by demand for cheaper chips and new products to power Internet-connected gadgets as well as the need to cut costs, the global semi-conductor industry has seen a wave of consolidation this year, with the Avago, Broadcom deal among the biggest.

The European Commission said it had some initial concerns, but these were dispelled after Avago agreed to let other switch chipmakers have continued access to essential intellectual property on reasonable terms.

This meant no concessions were required from Avago despite a preliminary offer, the EU competition authority said, confirming a Reuters story on Nov. 3.

"Thanks to very good cooperation with the companies the Commission has been able to approve this multi-billion dollar takeover within a very short space of time while preserving effective competition in this crucial high technology sector," European Competition Commissioner Margrethe Vestager said.

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

(Reporting By Foo Yun Chee and Philip Blenkinsop)