Cisco Systems Inc’s purchase of Acacia Communications Inc has been approved by China’s antitrust regulator on condition that the companies ensure fair competition, the watchdog said on Tuesday.
The State Administration for Market Regulation’s (SAMR) green light brings the $4.5 billion dollar deal to a close after approval from other governments.
Network gear maker Cisco first announced its intention to acquire optical components manufacturer Acacia in 2019, looking to capture more business from telecoms companies.
China’s approval was the only remaining closing condition for the deal, Cisco said in July last year..
One of China’s top market regulators, SAMR has authority akin to the European Commission to approve acquisitions involving multinational corporations.
SAMR on Tuesday said the Acacia acquisition can proceed provided the companies continue to service existing contracts in China and continue to supply customers in China “in accordance with the principles of fairness, reasonableness and non-discrimination”.
Accelerating a crackdown on anticompetitive behaviour in China’s booming internet space, SAMR recently launched an antitrust probe into e-commerce giant Alibaba Group Holding Ltd.
Reporting by Josh Horwitz in Shanghai and Lusha Zhang and Yingzhi Yang in Beijing; Editing by David Goodman
Source: Reuters