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| Red on red gets red approval |
One of the reasons AMD wanted to acquire Xilinx is because Xilinx’s company color is red and AMD calculated in their offer prices how money could be saved by not having to do a rebranding of Xilinx’s collateral. (AMD previously said that it expects to achieve about $300 million in annualized cost savings within 18 months of the close of the deal.)
Today (or maybe it was yesterday in another time zone, the Chinese government has okayed the merger of two companies based in the U.S, to merge. That a foreign country with an anti-capitalism government has anything to say about what two U.S. do or don’t do is and of itself a fascinating question, but evidently, if those capitalistic companies want to sell their wares in communistic Red China, they had to get Xi Jinping’s blessing. He has done so assuring the $35 billion deal started in October 2020 can now proceed.
The capitalistic U.S. government hasn’t raised any concerns about the deal, and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act will expire at the end of the day on Feb. 9 (unless the companies receive early termination or a request for additional information).
AMD also won unconditional approval from the socialistic EU for the acquisition in July 2021 so all forms of governments and philosophies seem to have checked in although the Klingons and Borg have not expressed their views yet. But given the Borg’s attitude toward assimilation, the management of AMD is confident they too will go along with the deal.
Not quite the level of Joy is being felt in Tokyo by SoftBank, Cambridge, or San Jose by Nvidia. You could say they were green with envy.