[H]ardOCP: Qualcomm Abandons $44 Billion NXP Acquisition

Daniel Fowler
Декабря 4, 2018

Qualcomm said it's not interested in reviving its collapsed acquisition of NXP Semiconductors. It is important to note that both parties, Qualcomm and NXP, have already walked away from the deal.

"Although we were pleased to hear from President Trump and President Xi about the previously proposed acquisition of NXP by Qualcomm, the deadline for that transaction has expired", said the company.

And in its statement about the truce, the White House said China's President Xi Jinping had stated he was "open to approving the previously unapproved Qualcomm-NXP deal should it again be presented to him". China retaliated with tariffs on American goods and by withholding approval of the Qualcomm-NXP merger. The deal was reportedly worth $44 billion.

In July, Qualcomm, which is based in California, confirmed that the company is terminating its proposed takeover of its rival NXP which is based in The Netherlands.

In a statement following Trump's meeting with Xi, the administration said it would hold off on plans raise tariffs on Chinese goods from 10 percent to 25 percent early next year while the two sides enter talks. Qualcomm cited China's cancellation of its regulatory application as one of the main reason why the deal did not push through.

Читайте также: Sri Lanka's disputed prime minister takes his fight to the Supreme Court

Qualcomm abandoned the deal to buy NXP in July, after it was unable to secure Chinese regulatory approval.

Qualcomm shares closed up 1.5 percent at $59.14 (about Rs. 4,200) in NY on Monday, while NXP shares ended up 2.75 percent at $85.67 (around Rs. 6,000).

The deal, which was originally announced in 2016, was approved by eight other regulators around the world.

Despite the positive indications from the Chinese government, a deal may be hard to negotiate, as both companies conducted stock buybacks after the deal fell through, and Qualcomm paid NXP a $2 billion break-up fee. According to Bloomberg, China's Ministry of Commerce was concerned about Qualcomm's plans for patent licensing - but it is commonly supposed that the USA's threatened trade war with the country, in part down to a sales ban on ZTE products in the United States, was a major factor.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2019 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Other reports by

Discuss This Article