Advanced Micro Devices, (AMD) and ATI Technologies (ATI) have announced that the proposed acquisition of ATI by AMD has been approved by the Minister of Industry under the Investment Canada Act, satisfying one of the conditions to the closing of the acquisition.
“We are confident that our plans for the combination of AMD and ATI will deliver customer-centric solutions and will benefit Canada and its future role in the technology industry,” says AMD chairman and CEO, Hector Ruiz. “We look forward to the successful completion of the transaction that will generate new opportunities for the companies, their employees and the communities in which they operate.”
The proposed acquisition, announced on July 24, still remains subject to the approval of ATI shareholders, court approval of the plan of arrangement and other customary closing conditions. Subject to satisfaction or waiver of these conditions, the transaction is expected to be completed during the week of October 23.
Demonstrating that the transaction will be a net benefit to Canada, AMD made several commitments to the Minister of Industry with respect to its Canadian operations, including:
— Plans to expand research and development in Canada by committing to increase the number of employees in the R&D sector in Canada; increase total expenditures on research and development in Canada when compared to ATI’s expenditures in this area in the prior years; and increase the number of student co-op positions that will be available to Canadian students at its operations in Canada;
— Nominating a Canadian for election to AMD’s board of directors over the next five years, highlighting the importance that Canada will play in the ongoing operations of the combined AMD-ATI entity; and
— Plans for a global mandate for the current ATI consumer business unit, which will continue to be based in Markham, Canada. The current head of this unit, a Canadian citizen, is expected to continue in this leadership role.