Nvidia Gets China’s OK For $6.9B Chip Deal

US chip supplier Nvidia announced on Thursday, April 16, Chinese authorities had approved its US$6.9 billion acquisition of Israeli chip designer Mellanox Technologies, overcoming the last obstacle for the deal announced over a year earlier.

Many acquisitions between US and international companies with significant operations in China have faced challenges in securing approval from the country’s regulator due to a bitter trade war between the two largest economies of the world that started in January, 2018.

Two years ago, US chipmaker Qualcomm had to walk away from a US$44 billion deal to buy NXP Semiconductors after failing to secure Chinese regulatory approval.

Nvidia, known for its powerful gaming graphics chips, wants to bolster its data center and artificial intelligence business through the Mellanox takeover, its biggest deal, to better compete with rival Intel.

US and EU antitrust authorities have already given their approval for the deal, which is expected to close before April 27, 2020.

Full Content: Yahoo

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