AMD's acquisition of ATI inches forwards

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AMD's acquisition of ATI inches forwards

Canadian Minister of Industry gives the nod.

AMD's purchase of graphics chip maker ATI has been approved by the Canadian Minister of Industry. 

AMD announced its intention to acquire the graphics company earlier this year, and the proposed takeover has now been approved under the Investment Canada Act, satisfying one of the conditions to completing the acquisition.

"We are confident that our plans for the combination of AMD and ATI will benefit Canada and its future role in the technology industry," said AMD chairman and chief executive Hector Ruiz.

"We look forward to the successful completion of a transaction that will generate new opportunities for both companies, the employees and the communities in which we operate."

The deal still requires the approval of ATI shareholders, court approval of the plan of arrangement and other conditions. Completion is now expected during the week commencing 23 October.

In order to convince the Minister of Industry AMD has committed to expanding its research and development in Canada and will nominate a Canadian citizen for election to AMD's board.

AMD announced its plans to acquire graphics chip maker ATI in a cash and shares deal valued at US$5.4 billion on 24 July. The combined entity could result in cost savings of US$75 million by the end of 2007.
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