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AMD Shares Rise on Report of No EC Objection to Xilinx Merger

AMD rose after a report that the EC hasn’t objected to the semiconductor titan’s proposed $35 billion takeover of peer chipmaker Xilinx
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Shares of Advanced Micro Devices  (AMD) - Get Report rose on Thursday after a report said the European Commission hasn’t raised objections to the semiconductor titan’s proposed $35 billion takeover of peer chipmaker Xilinx  (XLNX) - Get Report.

A knowledgeable source provided the information to Dealreporter. The person said the EC hasn’t deployed a state-of-play meeting in its Phase I investigation of the transaction.

AMD, Santa Clara, Calif., recently traded at $83.93, up 4.8%. Its shares have slid 13% over the past six months. Xilinx, San Jose, Calif., recently traded at $131.49, up 4.2%. It, too, dropped 13% over the past six months.

The two companies said in April that their shareholders approved the deal. Under the terms, AMD would pay 1.7234 shares for each Xilinx share.

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

The move "[combines] central processing units, graphics processing units, field programmable gate arrays, adaptive systems on chips, and deep software expertise to enable leadership in computing platforms for cloud, edge and end devices,” they added.

Last month, AMD said it would repurchase up to $4 billion of its stock on the open market. AMD said that it expected to fund the repurchases through cash generated from operations.

AMD said the buyback program has no termination date and may be suspended or discontinued at any time.

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