AMD and ATI have overcome the first set of merger obstacles by complying with various US, Canadian and German acquisition controls.
All that now stands in the way of the merger of the chip and graphics chip vendors are the ATI shareholders, but both companies are confident that the merger will get the green light.
The companies have just announced that the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 has expired. Also, the Canadian Commissioner of Competition has issued an advance ruling certificate in connection with the proposed acquisition under the Canadian Competition Act. The German Federal Cartel Office has also cleared the deal.
The proposed acquisition was announced in July (CRN, 31 July) but still has to get the approval of ATI shareholders, court approval of the plan of arrangement and other regulatory approvals from Canadian and Taiwanese officials. AMD is hoping to close the deal during ATI’s first financial quarter, which ends on 30 November. ATI’s shareholders will meet to vote next month.
Hector Ruiz, chairman and chief executive of AMD, said: “We are pleased to pass through the HSR waiting period and receive clearance
from the Canadian Competition Bureau and the German Federal Cartel Office. We look forward to the 13 October ATI shareholder vote and additional regulatory approvals, and to merging the companies to drive growth, innovation and choice for our customers, partners and the industry.”
David Orton, chief executive of ATI, was equally optimistic. “Our integration planning is underway,” he said. “The more closely we get to know the team at AMD, the more excited we are about the opportunities and potential for the combined organisation and our customers once the deal is completed.”
However, shareholders will not be pleased by ATI’s Q4 estimate warning, which has come in far below what the company had predicted, thanks to damage done by the proposed merger. ATI said that Q4 turnover will be roughly $520m, below the low end of its expectations and a long way from Q3 revenues of more than $652m. The revenue plunge has been attributed to a sharper than expected decline in sales of ATI’s integrated chipsets for Intel platforms.
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