China shifts blame to Qualcomm for NXP deal expiry - Mobile World Live

China shifts blame to Qualcomm for NXP deal expiry

27 JUL 2018

China’s competition regulator hit back at accusations its inaction led to Qualcomm abandoning attempts to acquire NXP Semiconductors for $44 billion, stating its concerns had not been adequately addressed for it to pass the deal.

In a translated statement, China’s State Administration for Market Regulation said it had been in regular contact with Qualcomm to outline its concerns, but the latest solution offered by the US company had not solved the issues.

The statement added it remained in discussions with Qualcomm and would continue to investigate the transaction up to an extended deadline of 14 October. This is despite both Qualcomm and NXP stating the deal was completely dead.

The regulator noted the decision to abandon the transaction and “respects the choice of both parties”, adding going forward the organisation would continue to: “strictly follow the provisions of the anti-monopoly law, treat all types of enterprises at home and abroad fairly and fairly, and ensure that all market players participate in competition fairly.”

Earlier in the week Qualcomm wrote-off attempts to acquire NXP after 21 months when, having achieved approval from every required global regulator except China, the final deadline placed on the deal expired without approval from Beijing.

Speculation in the US suggested lack of approval from China’s market regulator related to wider trade issues between the US and China, rather than about the deal itself.

Meanwhile, in an interview with Bloomberg, NXP’s CEO Richard Clemmer said the company would now avoid big deals due to the “uncertainty” that came with them.

He also blamed “politics” for the collapse of its acquisition by Qualcomm. The end of the deal means NXP is set to receive a break-up fee of $2 billion.

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Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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