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AMD will have to wait longer than expected to close the purchase of Xilinx

It has been several months since the shareholders approved that AMD bought Xilinx, an operation announced a year ago. But we will still have to wait a few weeks until the operation is definitively closed. As confirmed by AMD itself, the purchase will be completed during the first quarter of this year which has just started, several months after both companies expected, which were confident that they could finalize the transaction before the end of 2021.

The delay is due, to a large extent, to the problems that the operation still has with the regulatory authorities of China, a country in which it entered the second phase of the approval of the purchase process last July. According to Tom’s Hardware, there were several rumors in early December that AMD had made some concessions and unspecified changes to satisfy Chinese regulatory authorities.

A few days later there was news that China’s antitrust agency, the State Administration for Market Regulation, SAMR, I was still evaluating the solutions proposed by AMD. But it does not seem that it will have many obstacles to overcome this barrier. The operation has not had excessive problems, on the other hand, in obtaining authorization from other relevant regulatory agencies. Therefore, the closing of the operation seems a matter of time, with no structural problems in the agreement that could destroy the purchase agreement.

Of course, the purchase will take place at a time when tensions between the governments of China and the United States on trade issues continue to not relax, although China continues to approve that companies from the country buy American companies, even with conditions. As SK Hynix has done with a part of Intel dedicated to NAND and SSD chips.

And while the closing of the purchase process arrives, from AMD they confirm the delay in a statement, in which the company indicates that they continue «progressing through regulatory approvals to close our transaction. Although we previously expected to get all approvals by the end of 2021, we have not yet completed the process, and now we expect the transaction to close in the first quarter of 2022. Our dialogue with regulators continues to progress productively, and we look forward to securing all approvals requested. There are no more changes to the long-announced terms and plans regarding the transaction, and companies are still waiting for the proposed combination to create the leader in high-performance and adaptive high-performance computing.«.

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