2023-05-24 10:09:22 ET
The deal spread in MaxLinear's ( NASDAQ: MXL ) planned acquisition of Silicon Motion ( NASDAQ: SIMO ) narrowed amid a report on China's review of the transaction. The spread narrowed to $49.73 from from $52.94.
It's understood that the companies are starting to make progress with Chinese third parties, according to traders, who cited a report that was circulating on Wednesday. As the industrial concerns appear modest, the case is able to go forward at China's antitrust regulator the State Administration for Market Regulation.
It appears that the NAND flash controllers are now being viewed as not a very strategic area, according to the report.
The report circulating on Wednesday appears in some ways to contradict a Dealreporter item on Friday that claimed Silicon Motion ( SIMO ) and MaxLinear ( MXL ) appear to be having trouble finding a solution that can push the deal ahead. The report also indicated that SAMR's review of the deal had been suspended for some time.
A report late last month indicated that SAMR had "stopped the clock" to give it more time to address some issues raised by Chinese semiconductor customers.
China's antitrust review of the transaction has dragged on for months. Last month the WSJ reported that Chinese regulators have recently slowed down merger reviews in a number of proposed U.S. deals, including the Silicon Motion/MaxLinear deal.
More on MaxLinear, Silicon Motion
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- Why Silicon Motion Technology's Stock Is A Good Hedge Against Potential Downside
- Silicon Motion Technology Q1 misses top and bottom consensus
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Silicon Motion/MaxLinear spread narrows amid report on China antitrust review