2023-07-26 10:19:22 ET
Silicon Motion Technology ( NASDAQ: SIMO ) stock surged ~77% on Wednesday after China's State Administration for Market Regulation granted conditional approval to the company's $3.8B acquisition by Maxlinear ( MXL ).
Carlsbad, Calif.-based Maxlinear shares tumbled ~23% following the Chinese antitrust regulator's conditional nod.. MXL is also scheduled to announce its Q2 results at market close today.
The Chinese regulator said it conducted an anti-monopoly review on the concentration of undertakings and decided to approve them with additional restrictive conditions.
In June, the deal was given a greenlight by the National Development and Reform Commission and the Ministry of Industry and Information in China.
Over a year ago, in May 2022, MaxLinear agreed to acquire Silicon Motion for about $3.8B, or $114.34 in stock and cash. MaxLinear had said that the addition of Silicon Motion’s NAND flash controller technology and customer relationships complementes its leadership in Broadband, Connectivity, and Infrastructure markets.
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Silicon Motion surges ~80% on Chinese antitrust regulator's conditional nod to Maxlinear deal