China is in no hurry to approve NVIDIA's deal with Mellanox

Speaking at the Quarterly Reporting Conference in May, NVIDIA CEO and Founder Jen-Hsun Huang said with confidence that the controversy that was brewing between the United States and China around Huawei at that moment would not affect the approval of the deal to buy the Israeli company Mellanox Technologies . For NVIDIA, this deal should be the largest in history, it will lay out $ 6,9 billion of its own funds for the assets of the Israeli developer of high-speed interfaces. The head of NVIDIA later signaled that after completing the purchase of Mellanox, the company would take a pause in terms of acquisitions.

Few analysts are now ignoring NVIDIA's potential in the data center segment, where the acquisition of Mellanox's assets would allow the company to gain access to cutting-edge technologies related to data interfaces in server systems. Since May, the mood of the American president following the results of negotiations with China in the field of foreign trade has repeatedly changed polarity, so it is also very difficult to predict the decision of the Chinese antimonopoly authorities on the deal with Mellanox.

In this situation, even more uncertainty is added by the statement of one of the presenters of the CNBC television channel, who said about the delay by the Chinese authorities of the verdict on the deal between NVIDIA and Mellanox. Until now, representatives of the first of the companies have used every opportunity to declare their confidence in the successful outcome of this procedure, but the year is drawing to a close, and the Chinese antimonopoly authorities are in no hurry to approve.

NVIDIA now receives no more than a quarter of all revenue from the sale of server products, but many experts are convinced that in the coming years this business will become one of the most dynamically growing for it. Without Mellanox technology, it will be more difficult to cope with expansion in this segment, so for NVIDIA the negative decision of Chinese officials will have serious consequences. Suffice it to recall that if the deal collapses, NVIDIA will pay Mellanox a $350 million release clause.

Source: 3dnews.ru