EU Regulators to Rule on AMD’s $4.9 Billion ZT Systems Buy Soon

European Union antitrust regulators are set to decide by March 12 on whether to approve U.S. chipmaker AMD’s $4.9 billion acquisition of server manufacturer ZT Systems, according to a filing from the European Commission on Wednesday.

AMD initially announced the deal in August 2023 as part of its strategy to expand its artificial intelligence (AI) hardware capabilities and strengthen its position against competitors like Nvidia, per Reuters. The acquisition would bolster AMD’s portfolio by integrating ZT Systems’ AI infrastructure expertise, particularly in serving major hyperscale computing firms.

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According to Reuters, ZT Systems counts major tech giants such as Microsoft and Meta Platforms among its customers. The company specializes in AI infrastructure, which is increasingly critical as demand for advanced computing power rises.

The European Commission’s review will determine whether the transaction can proceed without conditions, whether remedies are needed to address potential competition concerns, or if a more in-depth investigation is warranted. If regulators identify significant antitrust risks, they could extend the process by launching a four-month-long probe, per Reuters.

Source: Reuters