By Dhirendra Tripathi
Investing.com – Xilinx (NASDAQ:XLNX) stock was up 4.5% in premarket trading Thursday as Chinese regulators conditionally approved AMD's (NASDAQ:AMD) $35 billion takeover of the computing platforms developer.
The deal was first announced in October 2020. Regulators in U.S., U.K. and Europe have already blessed the deal.
The acquisition will take AMD into high-growth areas of automotive and communications networking, while strengthening its portfolio in the lucrative market for Cloud data center components.
The State Administration for Market Regulation's approval is noteworthy given that regulatory approvals for tech deals in U.S., China and Europe have been tough to come by in recent times. Concerns surrounding security and unfettered access to critical technology have thwarted numerous takeover attempts by companies, most recently Nvidia (NASDAQ:NVDA)'s attempt to buy ARM from Softbank (OTC:SFTBY).
China’s State Administration for Market Regulation attached a few riders before giving its OK. It asked AMD not to discriminate against Chinese clients and to continue supplying Xilinx’s products to the country.
The nod comes a day after Xilinx topped $1 billion in quarterly sales for the first time, up 26% year-on-year. Third-quarter net profit jumped 67% to $325 million as selling expenses and amortization costs fell.