Qualcomm seeks NXP EU nod without concessions - Mobile World Live

Qualcomm seeks NXP EU nod without concessions

02 JUN 2017

Qualcomm opted not to offer concessions to push through a $47 billion tie-up with NXP Semiconductors, a decision which runs the risk of a lengthy EU probe into the deal.

Reuters reported antitrust regulators confirmed Qualcomm had not submitted any concessions to allay potential competition concerns from the deal as of a 1 June deadline.

The EU’s preliminary review of the deal is expected on 9 June, when it could either clear the deal unconditionally or open an investigation which could last up to four months. Should a probe be opened, Qualcomm will be expected to provide evidence why the deal is not anti-competitive, or indeed propose concessions.

Details regarding the 1 June deadline come after news shareholders in NXP are pressing the company to renegotiate a higher price for the deal, which was agreed by both companies in October 2016.

At least three large NXP shareholders are reportedly pushing for a higher price, arguing the previous sum undervalues the company.

The EU’s will no doubt prove an important factor into whether Qualcomm increases its bid or not.

According to Reuters, rivals want assurances from the European Commission they would still be able to use NXP technology known as Mifare once the deal is completed.

The companies also want Qualcomm to agree to fair licensing practices.

For Qualcomm, NXP will help the company boost its services across different markets including IoT and automotive, and reduce its reliance on mobile.

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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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