Cisco Systems’s purchase of Acacia Communications has been approved by China’s antitrust regulator on condition that the companies ensure fair competition, reported Reuters.
The State Administration for Market Regulation’s (SAMR) green light brings the US$4.5 billion dollar deal to a close after approval from other countries including the United States.
Network gear maker Cisco first announced its intention to acquire optical components manufacturer Acacia in 2019, looking to capture more business from telecom companies.
SAMR on Tuesday, January 19, announced that 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.”
One of China’s top market regulators, SAMR has authority akin to the European Commission to approve acquisitions involving multinational corporations.
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