Marvell Technology Group Ltd. (NASDAQ: MRVL) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced a regulatory update surrounding a merger that proved to excite investors. Today, we’ll talk about:
- The regultory update;
- what we’re seeing from MRVL as a result; and
- what we’ll be watching for ahead.
MRVL Receives Regulatory Approval For CAVM Merger
As mentioned above, Marvell Technology Group is having an incredibly strong start to the trading session this morning after announcing regulatory news surrounding a merger. In a press release issued early this morning, the company announced that China’s State Administration for Market Regulation has approved the company’s merger with Cavium, Inc. (NASDAQ: CAVM).
However, it is important to keep in mind that this is only one step in the process. So far, the deal has received approval from both the MRVL and CAVM boards of directors, and now has received regulatory approval. However, the merger is still subject to customary closing conditions. Nonetheless, in the release, MRVL said that it expects that the merger will close in July of this year.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Marvel Technology Group, the news proved to be overwhelmingly positive. After all, the merger of Cavium into the company is a huge value addition that will likely lead to strong growth in revenue. So, it’s no surprise to see that the stock is screaming for the top as the result of investor excitment. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:57), MRVL is trading at $21.72 per share after a gain of $1.59 per share or 7.93% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MRVL. In particular, we’re interested in following the story surrounding the company’s continued work to close the merger with Cavium. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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