The Bundeskartellamt has today cleared plans by Renesas Electronics Corporation, Japan, to take over Altium Limited, Australia. Renesas is a global company active in the manufacture and distribution of semiconductors. Altium primarily offers software for designing so-called printed circuit boards (PCBs). PCBs are used to integrate components, in particular semiconductors, in electronic circuits. They are used, for example, in consumer electronics products, vehicles and a wide range of industrial applications.

Andreas Mundt, President of the Bundeskartellamt: “It is virtually impossible to find an electronic device that does not require a printed circuit board. PCBs are therefore extremely important for the entire industry. Altium is a major supplier in the relevant market for design software for certain PCBs. Renesas manufactures semiconductors and is an important player, in particular, in the automotive sector. We have therefore closely examined the takeover. It ultimately did not raise any competition concerns. The merger is not expected to strengthen Altium’s market position or have any other negative effects on competition.”

The market investigations have shown clear indications of Altium having a significant market position in “mainstream” software, that is software used for moderate-complexity PCB designs. Besides various design tools, Altium’s software also contains an integrated parts database with information on components, in particular semiconductors, and a suggestion function for alternative components to use in PCB designs.

As Altium and Renesas operate in different sectors, there are no (horizontal) overlaps in terms of competition. The Bundeskartellamt has also thoroughly examined possible effects on upstream or downstream markets as well as other effects on competition (vertical or conglomerate effects).

For the semiconductor markets supplied by Renesas, the investigations have not shown any adverse effects relevant under competition law, for example, due to Altium software favouring Renesas’s semiconductor products in its product suggestions or the integrated parts database. Altium users usually maintain their own parts databases, and, at least in larger companies, there are separate departments in charge of PCB design and manufacturer-independent procurement of semiconductors. Finally, Renesas being able to access Altium customers’ product information is not expected to have any effects relevant under competition law on semiconductor markets either.