AMD this afternoon has sent out a brief update to the public and investors, offering an update on the status of the ongoing Xilinx acquisition. AMD’s purchase of the FPGA maker, which was previous expected to close by the end of this year, is now expected to close in the first quarter of 2022. Attributing the setback to delays in regulatory approval, AMD believes they’ll be able to finally secure the necessary approval for the $35 billion deal next quarter.

As a quick refresher, AMD first announced their intention to buy Xilinx back in October of 2020. The FPGA maker was a lucrative target for AMD, whose sales (and market capitalization) have been growing by leaps and bounds over the last few years. This has brought AMD to the point where they are looking at diversification, as well as covering any gaps in their product lineup that would be holding them back in the server market. As the plan goes, acquiring Xilinx, will allow AMD to offer FPGAs alongside (and potentially integrated with) their current CPU and GPU/accelerator products.

The deal was previously expected to close by the end of 2021, and AMD has remained very tight lipped on the matter outside of their initial announcement. None the less, acquiring the necessary regulatory approval is apparently taking AMD longer than planned. According to the company they are not expecting to need to change the deal or alter any of its terms, but they will need another quarter to get the last approvals required to close the deal.

“We continue making good progress on the required regulatory approvals to close our transaction. While we had previously expected that we would secure all approvals by the end of 2021, we have not yet completed the process and we now expect the transaction to close in the first quarter of 2022. Our conversations with regulators continue to progress productively, and we expect to secure all required approvals.”

There are no additional changes to the previously announced terms or plans regarding the transaction and the companies continue to look forward to the proposed combination creating the industry’s high-performance and adaptive computing leader.

Source: AMD IR

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  • r3loaded - Friday, December 31, 2021 - link

    TL;DR: China is playing silly buggers and deliberately delaying approval of the deal because of course they are. Just another way the CCP screws with the West.

    I've got a lot of AMD and XLNX stock riding on this deal so I'm still hopeful it goes through, but it's been quite a drawn-out process.
    Reply
  • The Hardcard - Friday, December 31, 2021 - link

    As opposed to what other major economic power? The US, the EU, the UK, and Japan all make companies wait until their local, national issues are addressed before allowing these deals to go through. Who just blocked the Nvidia/ARM deal? Reply
  • mode_13h - Sunday, January 2, 2022 - link

    I think it's a mistake to compare the ARM acquisition to this one. There are more legitimate concerns about Nvidia using its ownership of ARM in anti-competitive ways than there are in this case. The fact that AMD expects the deal to clear without changes is further testament to that. Reply
  • TheinsanegamerN - Monday, January 3, 2022 - link

    But with the example r3loaded provided, the west plays the exact smae game. China could easily have a national concern over xilinx. Reply
  • mode_13h - Tuesday, January 4, 2022 - link

    If the concern is legit, then AMD wouldn't say it expects the deal to clear without changes. Usually, when a legit concern is raised, the acquiring company has to agree to some concessions to mitigate them. So, if no changes are expected, then it looks like China is merely slow-walking this. Reply
  • at_clucks - Friday, December 31, 2021 - link

    "Just another way the CCP screws with the West"

    Damn "those I read in the news I shouldn't like" doing "things that bugger me personally and everyone knows that should be primo importance for everyone".

    But really, you're used to places like US just whistling everyone through as long as all the right hands are greased with so much money it makes you question whether you actually know how to count. Then there are places like the EU where things are whistled through as long as the US waves the big stick. Look at the Facebook-Whatsapp deal where any person with one functioning synapse would have seen the eventual outcome. And yet here we are. Whether the delays now are caused by not enough grease, or actual regulatory job being performed matters little. Your little nationalistic whine sweats of uneducated hick.
    Reply
  • TheinsanegamerN - Monday, January 3, 2022 - link

    Why are you so mad? nothing he said is wrong, no different then someone pointing out the US screwed with the CCP through huweai.

    Also, name calling? Really, is this middle school? Couldnt you have come up with anything better.
    Reply
  • Wereweeb - Friday, December 31, 2021 - link

    Article: "10 tips on how to eat healthy food"
    Seppo in the comments: "China bad!"

    Ironically, the people who are loudest at for ex criticizing North Korea for brainwashing it's population seem to have had their brains washed down the drain a long time ago.

    I hope someday you manage to find it.
    Reply
  • TheinsanegamerN - Monday, January 3, 2022 - link

    $.50 hav ebeen despoted in your bank account for this comment, your social score has gone up by +1. Keep up the good work! Reply
  • Spunjji - Wednesday, January 5, 2022 - link

    You're hilarious. The fact remains that in any given comment section some clown will feel the need to whine about China in a way that is, at best, off-topic and hypocritical. Reply

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