Press Release: Mergers: Commission clears, subject to conditions, takeover of Gemplus by Axalto

The European Commission on 19 May 2006 approved under the EU Merger Regulation the planned acquisition by the Dutch company Axalto of Gemplus, established in Luxembourg. Both companies produce and sell smart cards used for mobile phones, payments and identification, and related products and services. The parties provided commitments to license the combined entity’s patent portfolio and provide third parties with interoperability information necessary to ensure the compatibility of their mobile phone SIM (Subscriber Identity Module) cards with the combined entity’s technology. In light of these commitments, the Commission has concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or a significant part of it.