Philips Electronics won permission from the European Commission on Monday to buy Belgian lamp and light fittings maker Partners in Lighting (PLI) from private equity group CVC Capital Partners.
"The Commission concluded that the concentration would not significantly impede effective competition in the European Economic Area," the EU executive said in a statement.
PLI is Europe's leading manufacturer of home lighting systems with a 7 percent market share, and markets its products under brand names such as Massive, Cucina and Aqua. The transaction, which values the entire enterprise plus debt at 590 million euros ($762.2 million), is expected to close in the first quarter of 2007.
The take-over of PLI boosts Philips's presence in luminaires, one of the few weak areas in the world's biggest lighting company's portfolio. In Western Europe, PLI's core market, Philips ranks only number two or three. One analyst had said at the time of the deal that the purchase provided another channel for Philips to sell light emitting diodes (LEDs).
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