2023-05-10 13:39:19 ET
The deal spread in MaxLinear's ( NASDAQ: MXL ) planned acquisition of Silicon Motion ( NASDAQ: SIMO ) widened amid a report on China's review of the deal. The spread widened to $45.63 from $43.41 on Tuesday.
MaxLinear ( MXL ) is said to still be engaging with Chinese third parties, though industry concerns about the combination still exist, according to traders, who cited a report that was circulating on Wednesday.
The report comes after another item late last month indicated that China's antitrust regulator had "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.
The latest report follows as 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.
Las month 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.
More on MaxLinear, Silicon Motion
- MaxLinear: Worst Is Priced In, Upgrade To Buy
- Why Silicon Motion Technology's Stock Is A Good Hedge Against Potential Downside
- Silicon Motion Technology Q1 misses top and bottom consensus
- Silicon Motion dips amid report that China review of MaxLinear not in final stages
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Silicon Motion/MaxLinear spread widens amid report on China review