AMD's proposed $35 billion acquisition of Xilinx is reportedly moving through the Chinese regulatory process. Market reporting organization MLex reported that the deal is progressing to Phase Two of the State Administration for Market Regulation (SAMR) review process.
MLex's report arrived shortly after the UK Competition and Markets Authority (CMA) approved the AMD-Xilinx deal. The acquisition won't be able to move forward until it's approved by other regulators, however, most notably in the U.S. and China.
SAMR's process involves up to three review periods: Phase One lasts 30 days, Phase Two lasts 60 days, and Phase Three lasts 90 days. The regulator decides at the end of each phase if it's ready to make a decision or if it will move on to the next phase.
Moving on to Phase Two doesn't necessarily spell trouble for AMD; it simply means SAMR wants more information about the deal's potential impact before it reaches a decision. AMD reportedly still believes the deal will close by the end of the year.
There shouldn't be many remaining obstacles to the acquisition. AMD and Xilinx said last year that both of their boards of directors unanimously approved the deal, and their shareholders also voted in favor of it when it was put to a vote in April.
AMD said the combined company would employ more than 13,000 engineers and invest more than $2.7 billion annually in R&D. Xilinx is expected to contribute its expertise with deep learning to AMD's efforts to expand in that sector.