Just a while after sweetening its Acacia takeover deal from $2.6 billion to $4.5 billion, Cisco has gotten the required approval from China’s antitrust regulator to go ahead with its proposed takeover, clearing the hurdle for the deal to go through. 

The approval came from China’s State Administration for Market Regulation (SAMR), the country’s antitrust regulator. Before now, Cisco made an earlier $2.6 billion bid for Acacia but later got rebuffed by the company on the grounds that it didn’t gain the required approval from China’s antitrust regulator in the stipulated time.

Now, with a takeover deal that was hiked from $2.6 billion to $4.5 billion, the hurdle appears to have been cleared for Cisco to buy Acacia, which is a major producer of optical communications equipment. It marks a big deal for Cisco to open 2021 with.

As it looks, Cisco first struck a deal to buy publicly-traded Acacia Communications in July 2019 but will complete its acquisition in 2021. The company originally sought to complete its acquisition in the second half of its fiscal 2020 but got plagued by regulatory delays.

Photo: Cisco CEO Chuck Robbins by World Economic Forum is licensed under CC BY-NC-SA 2.0

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