AMD’s $ 35 billion acquisition of Xilinx is now expected to be finalized in the first quarter of 2022, a few months after AMD and Xilinix initially proposed closing of the deal before the end of 2021.
AMD cleared regulatory hurdles in all relevant agencies except China’s SAMR. AMD entered the second phase of the approval process in China in July. Earlier this month, news leaked that AMD had filed some undefined “behavioral remedies” to appease Chinese regulators. Mid-month news emerged that China’s antitrust agency, the State Administration for Market Regulation (SAMR), was still testing the solutions AMD offered in the market.
AMD CEO Lisa Su said she was confident the deal would be done in 2021, telling us in an interview earlier this year that closing the deal with Xilinx was one of her goals. keys for 2021. She has reiterated that optimism in recent months, and regulators in the UK and US have endorsed the deal. For now, the slight delay appears to be more a question of timing than structural issues with the proposed acquisition that would derail the deal.
AMD’s acquisition of Xilinx comes at a time of heightened tensions between the US and Chinese governments as they remain embroiled in a trade war. Nonetheless, China’s recent approval of Intel’s sale of its NAND and SSD business to SK hynix indicates that such mergers are still possible, albeit with some restrictions. Meanwhile, Nvidia’s proposed $ 40 billion Arm acquisition is all but dead because of regulators, but this deal faces challenges in nearly every geography due to widespread concerns over anti-competitive behavior. potential. The deal proposed by AMD has met with no opposition in the face of the challenges surrounding the Nvidia / ARM merger.
Here is AMD’s statement on its adjusted expectations for the acquisition:
“SILICON VALLEY, California – December 30, 2021 – AMD (NASDAQ: AMD) and Xilinx, Inc. (NASDAQ: XLNX) today released the following statement regarding the status of global regulatory approvals for AMD’s proposed acquisition of Xilinx.
“We continue to make good progress on the regulatory approvals required to complete our transaction. While we previously expected to get all approvals by the end of 2021, we have not yet completed the process and now expect the transaction to close in the first quarter of 2022. Our conversations with regulators continue. to progress productively and we plan to obtain all required approvals. “
There are no further changes to the previously announced terms or plans regarding the transaction and the companies continue to look forward to the proposed combination creating the industry leader in high performance and adaptive computing. “