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Advanced Micro Cleared by EU to Acquire Xilinx for $35B

EU regulators cleared Advanced Micro to acquire Xilinx, finding no antitrust issues with the deal between the two chipmakers.
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Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report secured unconditional approval from European Union antitrust regulators for its $35 billion bid for Xilinx.  (XLNX) - Get Xilinx, Inc. (XLNX) Report 

The European Commission said that it had not found any antitrust issues with the deal between the two chipmakers. 

"The proposed transaction would raise no competition concerns in the European Economic Area given the absence of horizontal overlaps and vertical relationships between the activities of the companies," EU regulators said.  

The agency says the merged company would not have an incentive to foreclose rival providers of central processing units and graphics processing units and the presence of alternative suppliers. 

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Last month, a report said the EC was leaning toward clearing the deal, leading to a jump in the stock. AMD shares at last check eased 0.9% to $93.14.  

The two companies said in April that their shareholders had approved the deal. Under the terms, AMD, Santa Clara, Calif., would pay 1.7234 shares for each share of Xilinx, San Jose, Calif.

“The acquisition will bring together two industry leaders with complementary product portfolios and customers,” the companies said in a statement.

AMD and Xilinx plan to “capitalize on opportunities spanning some of the industry’s most important growth segments, including data centers, gaming, PCs, communications, automotive, industrial, aerospace and defense.”

Advanced Micro had unveiled the deal in October last year as part of its battle to overtake chipmaking rival Intel Corp.  (INTC) - Get Intel Corporation (INTC) Report

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