China conditionally approves Cisco-Acacia deal – Bloomberg

The Chinese State Administration for Market Regulation conditionally approved Cisco Systems Inc.'s proposed acquisition of Acacia Communications Inc., Bloomberg News reported, citing a statement from the agency.

The regulator said the companies should agree to continue to honor deals with current customers in China for the next five years starting from the effective date, according to the report.

The combined entity is also required to continue providing Chinese clients with product access "based on the principles of fairness, reasonableness and non-discrimination."

In the week of Jan. 12, Cisco and Acacia had agreed to an amended merger deal that sees Cisco's acquisition offer increase to $115 per share from $70 per share, or nearly $4.5 billion worth of deal value on a fully diluted basis, net of cash and marketable securities.

The companies expect to complete the transaction by the end of the first quarter.