Intel (NASDAQ:INTC) has reportedly engaged in early-stage discussions with China regarding its proposed acquisition of Tower Semiconductor (NASDAQ:TSEM), but approval isn’t expected within the next few weeks. Intel CEO Pat Gelsinger recently mentioned progress with Chinese regulators, but a Dealreporter article revealed that the approval hinges on U.S. export control restrictions and possible remedies to account for them.
Investors have been awaiting China’s antitrust approval since the $5.4 billion deal was announced in February of last year. Contradicting earlier speculation of an imminent decision, the Dealreporter article suggests that approval isn’t likely in the next few weeks. Intel is working diligently with regulators to obtain approval as soon as possible.
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 18 Holds, and four Sells assigned in the last three months. Furthermore, Intel appears to be fully valued based on the average price target of $30.85 per share, which implies 0.34% downside potential.
