AMD gets conditional Chinese approval for Xilinx deal
Advanced Micro Devices Inc. has obtained clearance from Chinese regulators for its planned $35 billion acquisition of fellow chipmaker Xilinx Inc., the company confirmed in a filing Thursday.
China’s State Administration for Market Regulation has offered approval for the merger with various conditionsincluding that AMD AMD,
and Xilinx XLNX,
use development methods compatible with Arm-based processors, Reuters reported on Thursday morning.
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The chip company said in late December that while it initially expected the deal with Xilinx to close in 2021, it was pushing those expectations to the first quarter of 2022. AMD noted in its 8-K filing with the Securities and Exchange Commission Thursday that it still anticipates a close of the first quarter.
AMD also revealed in its 8-K that it had refiled its pre-merger notification and reporting form with the Federal Trade Commission and Department of Justice earlier in January, with the previous notification set to expire. The waiting period under the Hart-Scott-Rodino Antitrust Enhancements Act will expire at the end of the day on February 9, unless the companies receive early termination or a request for additional information.
AMD first announced the all-stock deal for Xilinx in October 2020.
Read: Intel stock punished again as profit margins thinner than earnings forecast, but CEO sticks to his plan
Wells Fargo analyst Aaron Rakers noted Thursday that AMD has already secured approval for the deal with regulators in the US, UK and EU.
“We remain positive on AMD’s acquisition of Xilinx and are focused on AMD’s ability to realize synergies,” he said in his note to clients. AMD has previously said it expects to achieve approximately $300 million in annualized cost savings within 18 months of closing the deal.
AMD shares rose 1.8% in morning trading Thursday, while Xilinx shares were ahead 7.9%. AMD’s stock is down 8.8% over the past three months, while Xilinx’s stock is up 4.1% and the S&P 500 SPX,