AMD announced that it planned to acquire Xilinx months ago; however, the deal was yet to receive a green flag. However, recently the UK Competition and Markets Authority (CMA) announced its approval of the acquisition plan in an all-stock transaction worth roughly $35 billion.
Related to ruling the acquisition as appropriate, the UK Competition and Markets Authority CMA did not offer many details as of now; however it did state the flowing statement. “The CMA has cleared the anticipated acquisition by Advanced Micro Devices, Inc. of Xilinx, Inc. The full text of the decision will be available shortly.”
It was originally in October 2020, that AMD announced its plans to acquire Xilinx. According to the details made public regarding the deal, it would give AMD shareholders a 74% stake in the combined company; and the Xilinx shareholders would own the other 26%. It was later announced that both the companies’ boards of directors unanimously approved the deal.
The parties involved later made a huge announcement that their shareholders have “overwhelmingly” approved the deal. The chipmaker even announced that its regulators would clear the acquisition by the end of the year. The CMA’s decision brings that expectation closer to reality.
The combined company of AMD and Xilinx is expected to invest over $2.7 billion in R&D annually to continue the development of CPUs, GPUs, FPGAs, SoCs, and other technologies. Owing to Xilinx’s experience with deep learning, the collaboration will be vital to AMD’s plans for the future.
However, as big as this news might be, we are still waiting for one of the biggest acquisitions in the processor industry. The CMA is still expected to prepare a report on Nvidia’s proposed acquisition of Arm by July 31. So let’s see how the events unfold.
