The Chinese regulators are the last resort, which should create favorable conditions for the completion of NVIDIA's deal to purchase the assets of Mellanox Technologies. Informed sources now report that the final stage of the agreement is close to completion.
NVIDIA's intention to buy the Israeli company Mellanox Technologies was announced in March last year. The deal is expected to be worth $6,9 billion. NVIDIA currently has about $11 billion in cash and highly liquid assets, so it won't need to borrow heavily to pay for the deal. In March, NVIDIA representatives expressed confidence that the deal would be closed in the current half of the year. In February, Chinese antimonopoly authorities extended the deadline for considering the application until March 10, with the possibility of a subsequent extension until June 10.
Now resource referring to the Dealreporter service, it reports that the package of documents necessary for the approval of the transaction has already been prepared by the Chinese antimonopoly authorities. By and large, it remains only to affix the signatures of relevant Chinese officials. The latter, in the current revision of the documents, abandoned the earlier requirement that Mellanox remain operationally independent after the deal was closed. Mellanox was originally planned to have broad autonomy within NVIDIA in terms of R&D budgets.
Mellanox Technologies is a developer of high-speed telecommunication solutions. It is generally believed that with the help of specialists and products from this company, NVIDIA will be able to strengthen its position in the server market segment, as well as in the supercomputer sector. So far, NVIDIA receives no more than a third of its revenue from the sale of GPUs for server applications, but this share is steadily increasing.
Source: 3dnews.ru