EU approves $21 billion takeover of Maxim
The EU has granted unconditional antitrust clearance for US chip manufacturer Analog Devices (ADI) to acquire Maxim.
The US$21 billion deal between the two rivals was largely expected to clear without contest.
It is ADI's biggest takeover deal and will enhance the firm's market share in automotive and 5G chipmaking, allowing it to compete with the likes of Texas Instruments.
Combined, the two expect their enterprise value to stand at $68 billion and, based on ADI's 2019 financials, the firm projects $8.2 billion in revenue and $2.7 billion in free cash flow following the deal. According to its own projections, this would make ADI the fourth largest playing in its field behind Broadcom, Texas Instruments and NVIDIA.
shareholders voted to approve the merger in October.
At the time, ADI's president and CEO Vincent Roche, said: "We are pleased with the overwhelming support from our shareholders for this exciting combination. Together with Maxim, we will enhance our domain expertise and breadth of engineering capabilities to develop more complete solutions to solve customers’ most complex problems.
“We look forward to joining forces with Maxim to drive the next wave of semiconductor growth and deliver significant value to all our stakeholders.”