MaxLinear ( NASDAQ: MXL ) has started to proactively approach third parties in China regarding its $3.8 billion planned acquisition of Silicon Motion ( NASDAQ: SIMO ).
The companies are reaching out to the third parties to try to facilitate China's State Administration for Market Regulation, or SAMR, review of the deal, according to traders, who cited a report circulating on Friday.
The latest update comes after MaxLinear's ( MXL ) CFO said at a conference on Tuesday that the deal remains on track for a mid year close.
"Everything seems to be on track or moving as expected," MaxLinear CFO Steve Litchfield said at a Needham conference earlier on Tuesday. "Most of these deals are taking close to 12 months and that's why we set the time frame where it is and it seems to be playing out that way."
The comments came after a report in early November that SAMR re portedly approved MaxLinear's ( MXL ) application for its offer to acquire Taiwan-based Silicon Motion ( SIMO ). The companies first announced the deal in May.
Needham upgraded Silicon Motion ( SIMO ) to buy from hold in early November and said that he believed MaxLinear ( MXL ) would make concessions to China (i.e. customer prices and supply continuity) to help the deal get across the finish line.
For further details see:
MaxLinear said to start talks with Chinese third parties in Silicon Motion deal