Global manufacturer of semiconductors Avago (NASDAQ:AVGO) has been cleared by the European antitrust regulators to carry out a $37 billion takeover of Broadcom (NASDAQ:BRCM) to create the third-largest chip-maker in the world.

Despite some initial concerns, The European Commission allowed the merger after Avago agreed to let other switch chipmakers have continued access to essential intellectual property on reasonable terms.

Margrethe Vestager from the European Competition Commissioner said;

“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,”

Following the European Commission’s approval of the company’s acquisition, Broadcom stocks are down by 0.06% to $53.50 in pre-market trading.