Silicon Motion Technology surged over 75% in premarket trading ahead of its financial results.
It will release its second quarter 2023 financial results after the market closes on July 27, 2023.
The deal spread in MaxLinear's (NASDAQ:MXL) planned purchase of Silicon Motion (NASDAQ:SIMO) widened amid a report about China's antitrust review of the deal. The spread widened to $49.71 from $44.92 on Tuesday.
Talks with China's main antitrust regulator appear to have slowed down in recent weeks, and the remedy package submitted by the parties looks to be final, according to traders, who cited a report that was circulating on Wednesday. It's not clear if the remedies proposed will be acceptable to the third parties.
The deal is still waiting for from some third parties feedback for the antitrust authority to make a final ruling, according to the report. Some parties are Ok with the transaction, others are more skeptical.
The latest update marks a reversal from recent reports, including a dispatch from Digitimes late last month that the deal was nearing appproving from Chinese regulators and a separate report talks had been progressing. There were also reports in May as far as progresss in China's review of the $3.8 billion purchase of Silicon Motion (SIMO).
Two regulators, who oversee the semiconductor industry, have approved the SIMO/MXL combination, according to a Dealreporter item last month.
The latest report comes as a Aug. 7 deal termination deadline nears.
