2023-04-28 13:13:55 ET
The deal spread in MaxLinear's ( NASDAQ: MXL ) planned purchase of Silicon Motion ( NASDAQ: SIMO ) narrowed amid a report that China has paused its review of the deal. The spread narrowed by ~$1 to $40.
China's antitrust regulator has "stopped the clock" on its review of the $3.8 billion deal to give it more time to address some issues raised by Chinese semiconductor customers, according to traders, who cited a Capitol Forum report circulating.
The latest report comes as China's antitrust review of the transaction has dragged on for months. Earlier this month the WSJ reported that Chinese regulators have recently slowed down merger reviews in a number of proposed U.S. deals, including MaxLinear's ( MXL ) planned $3.8 billion acquisition of Silicon Motion .
Last Tuesday an analyst wrote that Silicon Motion's ( SIMO ) downside appears to be limited in a potential deal break in its sale to MaxLinear ( MXL ) as China regulators continue to scrutinize the combination. Silicon Motion ( SIMO ) has potential downside to $58 a share in a deal break, Susquehanna analyst Mehdi Hosseini wrote.
For more on Silicon Motion/MaxLinear
- Why Silicon Motion Technology's Stock Is A Good Hedge Against Potential Downside
- Silicon Motion dips amid report that China review of MaxLinear not in final stages
- Why MaxLinear Could Be Better Off Not Acquiring Silicon Motion Technology
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Silicon Motion/MaxLinear deal spread narrows amid report of China pause in review