The UK Secretary of State for Digital, Culture, Media and Sport on Monday began to probe AMD's proposal to acquire Xilinx for $35 billion. The CMA launched an inquiry inviting interested parties to notify it if the potential transaction can negatively impact UK's consumers or businesses. The deadline for the first phase of the investigation is July 6, 2021.
"The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services," the statement by the CMA reads.
Last October AMD and Xilinx announced that they reached a preliminary agreement for AMD to acquire Xilinx for $35 billion in an all-stock transaction. Shareholders of both companies approved the deal this April.
AMD needs Xilinx, a leading developer of FPGAs, to better compete with Intel, which owns Altera. Both AMD and Xilinx could survive and prosper independently, but the management of these companies believes that the combined company will be stronger than the two separate businesses.
With the takeover of Xilinx, AMD will be able to offer three types of compute devices used in datacenters: CPUs, GPUs, and FPGAs. Furthermore, it will be able to develop hybrid products combining general-purpose processor cores, compute GPU capabilities and field-programmable transistors.
This is an inquiry, so its a formal investigation.
UK can't stop the merger of 2 US companies in USA. However, these 2 companies also have offices in UK and operate in UK. So, UK has the power to limit what these companies could do within UK. Things like sanctions, taxes, ban them from gov contracts etc....
This one in particular is even more funny being from UK about two US companies. I have no worries that nvidia will finish the acquisition of AMR with success, so this one between AMD and Xilinx is really trivial.
Like I said, this FUD is just for show.
It does not matter if these are US comanies, its about where the HQ is. You lot dont seem to understand that these International organisations are about Borders, they are about Taxes. The US taxes were too high.
And, ARM is not UK owned, it was bought out long ago, but its HQ is in the UK so it is UK regulated. All countries have their individual laws too, and if some matter seems anti competitive then it MUST be investigated as a standard rule in the UK.
We live in a world where few are owning everything, and they have found a way to get around the laws protecting against monopolies, and they are using it.
You can control Owners, but you cannot stop majority share holders.
Take a look for yourself, look at majority shareholders for all large companies with a simple google search on each, like apple amd.
The shareholders are ;
Vangard inc3 Berkshire Hathaway inc
4. JP Morgan
These organisations own near every other company in this world between them as Majority shareholders. This is the largest scam in the world.