Deal: EU Clears AMD’s $35B Takeover Of Xilinx

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Chip giant AMD has secured unconditional approval from the European Union for its proposed $35bn takeover of chip rival Xilinx, clearing the way for the deal to go through. The EU’s antitrust union gave the approval stating that it had not found any issues with the deal after a preliminary review.

  • The conditions of AMD’s fast EU approval are in contrast to that of its main rival Nvidia which has faced close regulatory scrutiny trying to complete its proposed $40bn takeover of chip designer Arm. Separate probes into that deal have been opened by the EU and the UK, where Arm is based.
  • “The proposed transaction would raise no competition concerns in the European Economic Area given the absence of horizontal overlaps and vertical relationships between the activities of the companies,” the EU’s antitrust agency said about the AMD-Xilinx deal.
  • AMD is buying Xilinx, a publicly-traded company, in an all-stock deal valued at $35bn. The acquisition will make AMD a tougher force to reckon with in the chipmaking world, stepping up its rivalry with the likes of Nvidia and Intel Corp. 
  • AMD has been a major growth stock over the past few years, especially in 2019-20, as it stepped up its business under the leadership of CEO Lisa Su. In 2019, it was the top-performing stock of the S&P 500 with a return of 148%. Now, the company has a market cap of $113bn. 
  • With the EU’s approval, AMD’s Xilinx takeover will likely be finalized in the second half of this year as planned.

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