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The deal spread in MaxLinear’s (NASDAQ:NASDAQ:MXL) planned $3.8 billion purchase of Silicon Motion (NASDAQ:NASDAQ:SIMO) narrowed on a report on potential progress with China’s review of the transaction. The spread narrowed to ~$42.50 from $43.85 on Friday.
MaxLinear (MXL) is said to be making some progress on a remedy proposal with China’s State Administration for Market Regulation for its Silicon Motion (SIMO), according to traders, who cited a Capitol Forum report that was circulating on Tuesday.
The latest update follows a report last Wednesday that the companies were starting to make progress with Chinese third parties on the transaction. As the industrial concerns appear modest, the case is able to go forward at the Chinese regulator.
A report late last month indicated that SAMR had “stopped the clock” to give it more time to address some issues raised by Chinese semiconductor customers.
China’s antitrust review of the transaction has dragged on for months. Last month, the WSJ reported that Chinese regulators have recently slowed down merger reviews in a number of proposed U.S. deals, including the Silicon Motion/MaxLinear deal.
