Advanced Micro Devices Inc. won clearance from Chinese regulators for its planned $35 billion acquisition of fellow chipmaker Xilinx Inc., the company confirmed in a Thursday filing.
China’s State Administration for Market Regulation offered approval for the merger with various conditions, including that AMD AMD, -3.40% and Xilinx XLNX, +3.03% use development methods compatible with Arm-based processors, Reuters reported Thursday morning.
The chip company said in late December that while it initially anticipated that the Xilinx deal would close in 2021, it was pushing those expectations back 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 first-quarter close.
AMD also disclosed in its 8-K that it refiled its premerger notification and report form with the Federal Trade Commission and Department of Justice earlier in January as the previous notification was set to expire. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act will expire at the end of the day on Feb. 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.
“We remain positive on AMD’s acquisition of Xilinx and are focused on AMD’s ability to realize synergies,” Wells Fargo analyst Aaron Rakers wrote in a note to clients. AMD previously said that it expects to achieve about $300 million in annualized cost savings within 18 months of the deal close.
Shares of AMD were down 3.1% in morning trading Thursday, while shares of Xilinx were ahead 3.5%. AMD’s stock has declined 12.1% over the past three months, as Xilinx’s stock has added 0.3% and as the S&P 500 SPX, +1.05% has dropped 4.1%.
This story has been edited to remove comments from Wells Fargo analyst Aaron Rakers about the deal’s U.S. approval, which the analyst since amended.