Chipmaker Maxim Integrated Products (MXIM) - Get Maxim Integrated Products, Inc. (MXIM) Report traded higher after China approved its acquisition by Analog Devices (ADI) - Get Analog Devices, Inc. Report.
Shares of the San Jose company rose 4.07% to $105.69. Shares of Analog Devices rose 0.82% to $167.95 on Monday.
China’s State Administration for Market Regulation has given antitrust clearance for Analog Devices’ previously announced acquisition of Maxim.
"The transaction has now received all required regulatory clearances," the two companies said in a statement.
Analog Devices and Maxim anticipate that the deal will close on or about Aug. 26, subject to the satisfaction of the remaining customary closing conditions.
In July 2020, Analog Devices entered into a definitive agreement to acquire Maxim in an all-stock transaction valued at $20.9 billion.
The deal, which had already been approved by boards of both the companies, will create a chipmaking giant worth $68 billion, according to Analog Devices.
The idea behind the transaction was that bigger is better and the two companies combined will increase Analog’s revenue by $8.2 billion.
Maxim was founded in 1983 and went public in 1988. It made nine acquisitions between 2002 and 2013, with the most recent being Voltera in 2013, according to Crunchbase data.