Analog Devices, Maxim Integrated In Talks For Possible Combination: Reports

(RTTNews) - Shares of Analog Devices Inc (ADI) and Maxim Integrated Products Inc. (MXIM) closed about 10 percent up on Wednesday after reports of merger talks between the the chipmakers surfaced.

Maxim Integrated, which was working on a strategic review, was approached for a merger by bigger rival Analog Devices, Bloomberg reported citing people with knowledge of the matter. The source said the talks are ongoing and it may not result in a deal.

Maxim has a market capitalization of about $10.91 billion and closed up 10.4 percent at $38.33, while Analog has a market value of $19.13 billion and closed up 8.81 percent at $60.99 on Wednesday.

If completed this deal would be the latest merger in the semiconductor industry as more and more chip makers are merging due to higher costs and lower customer base.

Intel Corp agreed in June to buy Altera Corp for $16.7 billion, while Avago Technologies Ltd said in May that it would buy Broadcom Corp for $37 billion.