July 22, 2020 / 2:29 PM / 16 days ago

Cisco awaits regulatory approval from China on Acacia takeover deal

FILE PHOTO: The logo of U.S. networks giant Cisco Systems is seen at their headquarters in Issy-les-Moulineaux, near Paris, France, April 3, 2018. REUTERS/Philippe Wojazer

(Reuters) - Network gear maker Cisco Systems Inc (CSCO.O) and Acacia Communications Inc (ACIA.O) said on Wednesday China was yet to approve their proposed acquisition deal, already cleared by the United States, Germany and Austria.

The acquisition has been under regulatory review from the State Administration for Market Regulation of the People’s Republic of China (SAMR), the only remaining closing condition of the deal, the companies said.

The $2.84 billion deal was expected to close during the second half of Cisco’s full-year 2020.

Last July, Cisco said it would buy optical component maker Acacia in a bid to capture a bigger chunk of 5G spending by telecom companies.

Reporting by Neha Malara; Editing by Shinjini Ganguli

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