Singapore’s competition watchdog approves AMD’s $4.9 billion acquisition of ZT Systems By Investing.com
Investing.com– Singapore’s competition regulator has approved Advanced Micro Devices Inc (NASDAQ: ) ( AMD )’s proposed $4.9 billion acquisition of server maker ZT Group International ( ZT Systems ), saying the transaction is unlikely to reduce market competition.
AMD, a global semiconductor company, announced in August 2024 its intention to acquire ZT Systems for $4.9 billion in a cash and stock transaction. The strategic move aims to strengthen AMD’s capabilities in the fast-growing artificial intelligence (AI) and data center markets, positioning the company to better compete with industry leader Nvidia (NASDAQ: ).
ZT Systems specializes in the design and manufacture of custom server and storage solutions for large data centers, commonly referred to as hyperscalers. The integration of ZT Systems’ expertise is expected to enhance AMD’s ability to deliver end-to-end AI infrastructure solutions to its global clientele.
The Competition and Consumer Commission of Singapore (CCCS) launched a public consultation on 26 November 2024 to assess the potential impact of the acquisition on competition in Singapore. The consultation period ended on 10 December 2024, during which stakeholders were invited to provide feedback.
After a thorough review, the CCCS concluded that the acquisition would not breach Singapore’s competition laws and gave its approval.
“It is unlikely that the merged entity will be able to leverage market power in one market through a bundling or bundling strategy to profitably increase sales in another market,” the regulator said in a statement.
This approval marks a significant milestone in the acquisition process, bringing AMD closer to finalizing the deal, which is expected to close in the first half of 2025, pending approvals from other regulatory authorities.
