UK Competition Regulator Probes AMD's Buyout of Xilinx

[btarunr]

British competition regulator Competition and Markets Authority (CMA) on Monday, launched an enquiry into the ramifications of AMD's buy-out of FPGA maker Xilinx. The agency is soliciting opinions from the public on whether the $35 billion all-stock purchase will make goods and services less competitive for the UK. Unlike NVIDIA's Arm buyout the Xilinx acquisition is seeing no opposition from tech-giants. The Register notes that AMD could combine Xilinx's FPGAs with its x86 CPU and RDNA SIMD to create highly customizable HPC accelerators. AMD president Dr Lisa Su said "By combining our world-class engineering team and deep domain expertise, we will create an industry leader with the vision, talent and scale to define the future of high performance computing."



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[Sihastru]

Well, well, well. How the turntables...

 

[TumbleGeorge]

The empire strikes back?

 

[Fouquin]

Surprised it took this long. It's part of the process when a big merger like this happens, no matter who it is.

 

[InVasMani]

If anything it should level the playing field out given Intel was allowed to buyout Altera. Xilinx doesn't seem like it holds the same ramifications as ARM atm either and given the former helps offset and balance that out.

 

[lexluthermiester]

The agency is soliciting opinions from the public on whether the $35 billion all-stock purchase will make goods and services less competitive for the UK.

Here's the short answer: No.

AMD needs an R&D fab that they can make their own samples with. This company has it's own fab facilities. It doesn't take a genius to figure such out. So, UK gov? What mental giants do you have calling the shots on this one, eh?

 

[TumbleGeorge]

UK has not authority to make this action.

 

[dont whant to set it"']

It does not mean that bureau cannot ask the question, now does it?

 

[TumbleGeorge]

It does not mean that bureau cannot ask the question, now does it?

This overdue action, although it will not lead to anything else, will cause financial losses to AMD due to the very fact that it has been taken. I hope AMD will file lawsuit against UK for this financial damage.

 

[zlobby]

Surprised it took this long. It's part of the process when a big merger like this happens, no matter who it is.

Uhm, what happened to nvidia and ARM?

 

[ratirt]

UK seems to have problem with everything now.

 

[mtcn77]

I have to commend AMD for being a champion industry relations partner, I recall they were awarded a trophy for this.

 

[TumbleGeorge]

UK seems to have problem with everything now.

After the Exit...

 

[Hemmingstamp]

So, UK gov? What mental giants do you have calling the shots on this one, eh?

Non. It's a show for the outraged and will go through once the dust has settled.

Uhm, what happened to nvidia and ARM?

See above, same thing is happening.

 

[R0H1T]

See above, same thing is happening.

It's not quite the same with Nvidia, UK has a lot more say there (ARM) & if not them then China will probably block the merger for sure.

 

[Chrispy_]

Unlike ARM which are a single IP holder licensed by hundreds of companies around the world, Xilinx are just *a* FPGA company of many.

It's not like AMD buying them out locks up the market because there are still other companies like Altera, Intel, Microsemi, latTic, Achronix that competitors to AMD can use.

 

[1d10t]

All of sudden Brit were interested in technology.

 

[human_error]

Jeeze so much ignorance and Anglophobia in the replies so far.

1. As has been mentioned this happens a lot when large market dominant companies make acquisitions, especially when buying a very large player in a related space (Xilinx is the largest FPGA vendor in the world by marketshare).
2. The UK is not the only country which will be doing this - plenty of other regulators will perform the same due diligence for this acquisition and others. You just don't tend to hear about it in the news.
3. If the UK did have a problem with it then one of a number things could happen - the deal could be stopped, safeguards and guarantees in the agreement could be put in place to avoid abuse in the market, or the two companies could have to operate semi-independently when it comes to the UK market. The UK does have leverage when it comes to any business who wants to have access to the UK market.
4. Xilinx is the largest FPGA vendor in the world, and just like the Nvidia/ARM deal they need to make sure it won't end up reducing the number of competitors in the space, driving up prices, as well as ensuring AMD couldn't hike prices of Xilinx chips to AMD's competitors, again reducing competitiveness and driving up prices for everyone.

Tl;dr - this happens all the time for deals of this size in many, many countries and ensures that large businesses don't buy other companies purely as a way to damage competitors who rely on the acquired companies to do business.

 

[Hemmingstamp]

It's not quite the same with Nvidia, UK has a lot more say there (ARM)

Enlighten me.

& if not them then China will probably block the merger for sure.

Perhaps, but the UK will allow the sale though IMO.
We've nearly sold everything so I see no reason to stop this sale going ahead

All of sudden Brit were interested in technology.

Money talks

 

[TumbleGeorge]

All of sudden Brit were interested in technology.

The British are only interested in a few things:
1. Tea
2. How to get foreign labor, money and resources while drinking tea.

 

[mtcn77]

The British are only interested in a few things:
1. Tea
2. How to get foreign labor, money and resources while drinking tea.

You have forgotten one key aspect;

• Milk tea.

 

[R0H1T]

Enlighten me.

ARM is UK based right, with their HQ (technically?) still there? Most of the IP is based out of their UK operations, Xilinx probably has minimal physical presence & IP (operating) from there.

You have forgotten one key aspect;

• Milk tea.

Yeah that thing's called "tea" & over a billion drinkers can attest to the taste, I have no idea why it's now famous as "Chai" tea in the west

 

[mtcn77]

Yeah that thing's called "tea" & over a billion drinkers can attest to the taste, I have no idea why it's now famous as "Chai" tea in the west

There are long spans of Western Civilization that always meet at getting poisoned by sweets. It spans across millennia.

 

[1d10t]

Money talks

The British are only interested in a few things:
1. Tea
2. How to get foreign labor, money and resources while drinking tea.

I thought British only drink tea, eat crumpet and reading harry potter all day.

 

[john_]

Well, Intel already done this by buying Altera. Am I wrong? And that was approved by everyone.

I have no idea why it's now famous as "Chai" tea in the west

It was always "chai" in Greece.