Qualcomm rejects NXP revival talk - Mobile World Live

Qualcomm rejects NXP revival talk

03 DEC 2018

Qualcomm confirmed it is not planning to revive its failed bid to acquire NXP Semiconductors, despite the Chinese government indicating it would now be open to clearing the deal, Reuters reported.

The company dropped the deal in July following resistance from China. The deal, first announced in December 2016 for a value of $44 billion, had been expected to be completed after it received clearance from eight of the nine required regulatory bodies.

However, Chinese regulators closely scrutinised the acquisition due to concerns over the impact on domestic companies operating in the semiconductor market. It was also reported a trade spat between the US and China was a factor in their apparent resistance to Qualcomm’s move.

There are now indications trade relations between the countries are at a turning point following talks over the weekend between Prime Minister Xi Jinping and US President Donald Trump: as a result, the White House said China was now “open to approving the previously unapproved” NXP Semiconductors acquisition, Reuters reported.

However, Qualcomm poured cold water over suggestions it could revive the acquisition, with a representative telling the news agency “the deal for the transaction has expired, which terminated the contemplated deal. Qualcomm considers the matter closed”.

After dropping the deal, the company said it would use $30 billion of the $40 billion earmarked to acquire NXP Semiconductors to buy back shares, while paying out a $2 billion break-up fee to the company.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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