After running a review that lasted almost a year, China’s monopoly watchdog has decided to approve US chipmaking giant Nvidia’s $6.9 billion deal to buy Israeli network-equipment maker Mellanox, though not without demands of its own, reported Caixin.
The State Administration for Market Regulation (SAMR) posed seven conditions for the acquisition to proceed on the grounds that the merger of the two market leaders could diminish competition in the domestic and overseas markets for graphic processing units (GPUs), network gear and high-speed Ethernet adapters, the administration said in an announcement posted on its website late Thursday.
The SAMR has demanded that Nvidia Corp. and Mellanox Technologies Ltd. refrain from “forced selling” or putting any unreasonable conditions on deals with their customers in the Chinese market, according to the announcement. Two of the seven conditions were confidential.
The conditional approval removes the last roadblock to a deal that Nvidia announced in March 2019. The deal, which has already received regulatory approval from the US, the EU and Mexico, is expected to close by the end of this month.