The deal, which was announced in October 2020, is expected to help the South Korean semiconductor company to improve the competitiveness of its storage solutions besides expanding the memory ecosystem
SK hynix gets merger clearance in China for its $9bn deal with Intel. (Credit: SK HYNIX INC.)
SK hynix has secured merger clearance from China’s State Administration for Market Regulation (SAMR) for its previously announced $9bn acquisition of Intel NAND and SSD business.
With approval from the Chinese antitrust authority, SK hynix has secured all the necessary merger clearances in eight jurisdictions from the relevant competition bodies.
The South Korean semiconductor company said that it will continue to prepare to wrap up the deal, including meeting all of the closing conditions.
Through the acquisition, the company aims to boost the competitiveness of its storage solutions, which include enterprise SSDs. Furthermore, the deal is expected to enable it to expand the memory ecosystem to the benefit of customers, employees, partners, and shareholders.
The chipmaker stated: “SK hynix sincerely welcomes and appreciates SAMR’s merger clearance for the deal. SK hynix will enhance its competitiveness of NAND Flash and SSD business by continuing the remaining post-merger integration process.”
The deal was announced in October 2020. It gives SK Hynix access to the NAND SSD business, the NAND component, and wafer business in addition to the Dalian NAND memory manufacturing plant in China.
The Intel Optane business is not included in the transaction.
Intel will initially receive a payment of $7bn for selling the NAND SSD business and the Dalian facility.
The remaining assets, which include IP associated with the manufacture and design of NAND flash wafers, research and development (R&D) employees and the workforce at the Dalian fab, will transfer to the South Korean firm in March 2025. At this final closing, Intel will get the remaining payment of $2bn.