EU to unconditionally approve Nvidia’s $6.8 billion acquisition of Mellanox

The acquisition of chipmaker Mellanox Technologies for $6.8 billion will receive unconditional approval from EU antitrust authorities, sources familiar with the matter said on Wednesday. Nvidia, known for its powerful gamgraphic cards, hopes the deal will strengthen its data center and artificial intelligence (AI) businesses. It’s the company’s biggest acquisition and could help it better compete with Intel.

EU to unconditionally approve Nvidia's $6.8 billion acquisition of Mellanox

The European Commission declined to comment on the announcement, and it plans to make a decision on the deal by December 19. Nvidia and Melanox also declined to comment.

U.S. regulators have approved the deal unconditionally, while Melanox’s regulatory approval in China remains pending. Mellanox owns major clients such as Alibaba (NYSE: BABA) and Baidu (NASDAQ: BIDU) in China.

Nvidia, once known for its gaming chips, now offers chips designed to speed up the processing of artificial intelligence tasks such as server recognition images. Melanox produces chips for connecting servers inside the data center. In a previous bidding war for Melanox, Nvidia defeated Intel.

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