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How can you say go and leave? US companies have five mergers and acquisitions pending approval from China

Feb 02 68
A few days ago, due to US President Trump’s announcement of a 10% tariff on China’s $300 billion worth of goods, the Chinese side will fight back and the tariff wars of the two major economies will escalate again.

Trump is also pushing orders to ask US companies to withdraw from China and immediately start looking for alternatives or making products in the United States. However, since the layout of the Chinese market is very important for most American companies, it is too difficult to completely withdraw from China. Because Trump’s words came out, the United States opposed the tide.

In addition, Reuters recently disclosed mergers and acquisitions of several US companies, which have important business in China, so although the relevant mergers and acquisitions have been announced, they are still waiting for approval from the China National Market Regulatory Authority.

NVIDIA acquires Mellanox: In March of this year, Nvidia announced that it will acquire Israeli chip design company Mellanox for $6.8 billion in cash. Prior to this, Intel, Broadcom and even Xilinx had been eager to try, and Nvidia defeated these competitors, the acquisition will promote NVIDIA's business in the data center and artificial intelligence.

Merck Group's acquisition of Versum: In April of this year, Merck Group won the support of the semiconductor material supplier Versum's board of directors, obtained a $6.5 billion acquisition proposal, and Versum terminated the merger agreement with Entegris.

Infineon acquires Cypress: In June of this year, European semiconductor giant Infineon announced that it would acquire Silicon Valley Semiconductor's old-fashioned powerhouse, Plass Semiconductor, for US$10.1 billion. Infineon said that the two sides are highly complementary in terms of technology, which will further expand Infineon's market potential in high-growth markets such as automotive, industrial and Internet of Things.

II-VI Acquires Finisar: Last November, optical component manufacturer II-VI announced that it would acquire Apple Face ID supplier Finisar for $3.2 billion to expand its strategic layout in the 5G era.

AbbVie acquires Allergan: US pharmaceutical company AbbVie announced in June that it would acquire Irish pharmaceutical company Allergan for about $63 billion.

The above five US-initiated mergers and acquisitions are awaiting regulatory approval from China. The US media disclosed the Sino-US trade war as it was escalated. It must have been worried that China would counter it.