FAMI - XLNX Stock: The AMD Deal Buzz Giving Chinese Chipmaker Xilinx a Boost Today
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Xilinx (NASDAQ:XLNX) stock is rising higher on Thursday following an update on its acquisition deal with Advanced Micro Devices (NASDAQ:AMD).
The big news today is Chinese regulators allowing the deal to move forward. With that agreement come several requirements the two companies must meet. That includes not forcing tie-in sales, ensuring flexibility for XLNX’s FPGAs, that those remain compatible with ARM-based processors, and that the GPU and CPU offerings work with offerings in the Chinese market.
With this approval from China, it looks like Xilinx and Advanced Micro Devices won’t have any issues completing their merger. That would bring an end to a saga that started back in October 2020, reports Reuters.
Xilinx also made mention of the deal during its most recent earnings report. The company said that the merger agreement allows a special dividend for investors. This has the Board of Directors approving a 37 cents per share cash dividend. That dividend is payable only if the merger hasn’t closed before the record date for it.
So when exactly can XLNX investors expect the deal with AMD to reach a conclusion? According to that earnings report, the two companies are expecting the deal to close during the first quarter of 2021.
News of the merger moving forward has XLNX stock seeing heavy trading on Thursday. As of this writing, more than 10 million shares of the stock have changed hands. That’s a massive increase over the company’s daily average trading volume of roughly 3 million shares.
XLNX stock is up 3% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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