NVDA - NVIDIA's Mellanox Acquistion Finally Gets OK'd by Chinese Regulators
It took a year and a month, but NVIDIA's (NASDAQ: NVDA) proposed purchase of Mellanox Technologies (NASDAQ: MLNX) has cleared its final hurdle. Though there had been plenty of speculation that China might nix the transaction due to its now-forgotten trade war with the U.S., NVIDIA announced on April 16 that it had received the go-ahead to proceed from Chinese regulators.
The company expects the deal to close by April 27, and Mellanox shareholders will finally receive their $125 per share cash-out.
It's good news for NVIDIA shareholders too. Though a lot has changed in the world since March 2019, the data center end market and the cloud computing services it supports are more important than ever before. And Mellanox, a manufacturer of computer networking hardware, will be an even more valuable asset now than when the potential deal was formally announced, as is NVIDIA's own data center business. This is yet another reason to keep the stock as a core portfolio holding for the decade ahead.