China’s State Administration for Market Regulation is the last major antitrust body to approve Nvidia's $6.9 billion acquisition of the Israeli big data connectivity chipmaker.
US graphics processing giant Nvidia (Nasdaq: NVDA) last night announced that it has received approval from China’s State Administration for Market Regulation for the acquisition of Israeli big data connectivity chipmaker Mellanox Technologies Ltd. (Nasdaq:MLNX). Nvidia says that the deal will now be completed on April 27.
Nvidia signed a deal in March 2019 to acquire Israel-based Mellanox for $125 per share in cash, or just over $7 billion. The deal was meant to close by December 31 and approval was received last year from the US, EU and Mexican antitrust authorities. But as the trade war between the US and China escalated, real concerns were raised that the Chinese could sink the deal. Those worries have now been set aside.
Mellanox's share price rose 1.81% on Nasdaq last night to $124.64, giving a market cap of $6.988 billion.
Mellanox founder and CEO Eyal Waldman has said that he will continue to lead the company after its acquisition and Nvidia has said that it plans to increase its investment in Mellanox in particular and Israel in general.
Published by Globes, Israel business news - www.globes-online.com - on April 17, 2020
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Eyal Waldman and Jensen Huang Photo: Kadia Levy