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Marvell Cleared by China Regulators to Acquire Inphi

Analysts give a favorable nod to Marvell after a China regulatory entity cleared the chipmaker to acquire Inphi.

Marvell Technology Group  (MRVL)  said on Wednesday that its plan to acquire Inphi  (IPHI)  was approved by China’s State Administration for Market Regulation.

The deal is expected to close in April, pending approval by shareholders of both companies, the Santa Clara, Calif., chipmaker said.

At last check Marvell shares were 1.5% higher at $46.82. Inphi shares were 7% higher at $172.90.

A number of analysts, in reports cited by Bloomberg, see the move as a positive.

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Stifel said China’s regulatory clearance is “highly favorable” for Marvell. The investment firm has a buy rating and $62 price target on the shares.

It said the deal would help Marvell “establish itself as a formidable data infrastructure powerhouse.”

Deutsche Bank rates Marvell buy. It said the acquisition was "progressing swiftly” and called the China regulator's OK a “a major milestone” toward closing the deal.

Citi, which has a buy rating and $64 price target on Marvell shares, commented that “China would not approve the deal if the U.S. wasn’t going to.” It called the deal a “transformative growth acquisition.”

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Marvell and Inphi, the San Jose, Calif., semiconductor company, agreed on an acquisition in October 2020.

In the $10 billion cash-and-stock deal, Marvell will pay $66 a share cash and 2.323 of its shares for each share of Inphi.

Once the deal closes, Marvell holders will own 83% of the combined company and Inphi holders 17%.

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