EU clears HP transfer of manufacturing capacity

The European Commission gave the go-ahead yesterday to the sale of Hewlett-Packard's manufacturing operations in France to...

The European Commission gave the go-ahead yesterday to the sale of Hewlett-Packard's manufacturing operations in France to Sanmina-SCI, a provider of contract manufacturing services to computer manufacturers.

HP's French operation near Lyon supplies a wide range of electronic equipment, including servers, storage devices, personal computers and portable devices, and a range of IT services.

A statement from the commission said that it saw no competition problems with the deal.

Computer manufacturers tend to work with several electronics manufacturing services suppliers at the same time, on short-term contracts of between six and nine months, the commission said.

These factors will represent significant competitive constraints for the new entity, and have allowed the commission to clear the case.

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