Graphics chip-maker ATI Technologies, Canada's second-biggest tech company, officially became part of U.S.-based Advanced Micro Devices Wednesday.

Sunnyvale, Calif.,-based AMD offered $4.2 billion US in cash as well as 58 million of its shares to buy Markham, Ont.,-based ATI. 

Based on AMD's closing price on Tuesday, ATI shareholders will get $21.36 US for each ATI share they own.

ATI stock is being delisted from the TSX and Nasdaq. ATI's website already bears AMD's colours. But AMD says the ATI brand name will continue. 

AMD, the second-biggest computer chip company in the world, has promised to increase research and development spending in Canada beyond what ATI had spent and will nominate a Canadian for election to AMD's board of directors within the next five years.

Analysts said the deal will broaden AMD's product range as it tries to compete against global chip leader Intel Corp.

"Today marks a historic day for our employees, our partners and our customers as we officially welcome ATI into the AMD family," said AMD chief executive officer Hector Ruiz. "On day one, we are delivering a winning set of complementary technologies, igniting a new level of innovation and continuing to champion choice for the industry."

ATI latest Canadian firm to go foreign

ATI is the latest large Canadian company to be swallowed by foreign buyers. Brazil's CVRD announced earlier this week that it had acquired 76 per cent of Inco's shares and would move to pick up the rest and delist its shares by early November.  

Other Canadian icons that have been acquired recently include the Hudson's Bay Co., Falconbridge, Sleeman Breweries, Intrawest, Fairmont Hotels, Dofasco, CP Ships, Vincor and Domtar.

Foreign media have noticed the takeovers, too. Monday's edition of the New York Times noted that "the list of prominent Canadian companies now under new and foreign ownership goes on." 

In London, the Financial Times asked "Is Canada's stock market really vanishing?" and mused that "on current trends, Céline Dion might be the only Canadian icon left."  

BMO Capital Markets economist Doug Porter noted in a commentary earlier this week that the recent foreign takeover of so many publicly traded companies is a "potential negative" because of "the seemingly ever-narrowing investment options" for Canadians.

"Even with the record market capitalization for the TSX this year, the plain fact is that the index continues to narrow to almost exclusively a financials/resources boutique," he said.

"And the resources sector is the prime target of [merger and acquisition] activity."