2023-06-26 08:38:11 ET
MaxLinear's ( NASDAQ: MXL ) planned $3.8 billion purchase of Silicon Motion ( NASDAQ: SIMO ) has been given the go ahead by two Chinese regulators, though the deal still needs approval from China's antitrust regulator. Silicon Motion ( SIMO ) rose 1.6% in premarket trading.
The two regulators, who oversee the semiconductor industry, have approved the combination, according to a Dealreporter item on Monday, which cited familiar sources. The National Development and Reform Commission and the Ministry of Industry and Information are both supportive of the deal.
The transaction still needs approval from the Taiwan Affairs Trade Office before it can gain final approval from the State Administration for Market Regulation, according to the report. SAMR is likely to impose remedies in order to approve the deal.
Although the latest developments appear positivs, it's still not certain that SAMR can approve the deal the transaction's termination date on Aug. 7, according to the report.
The latest update on SIMO/MXL comes after a report circulated last week that the parties are said to be in discussions to address industrial concerns, talks with third parties are ongoing; and there has been an active dialogue with China's antitrust regulator over the past weeks.
More on MaxLinear/Silicon Motion
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- Why Silicon Motion Technology's Stock Is A Good Hedge Against Potential Downside
- Silicon Motion falls on report about status of China's review of MaxLinear deal
- Silicon Motion Technology Q1 misses top and bottom consensus
- Silicon Motion downside risk limited in potential MaxLinear deal break - analyst
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Two Chinese regulators give OK for MaxLinear's purchase of Silicon Motion - report