The European authorities suspended an investigation into Qualcomm’s planned acquisition of NXP Semiconductors, causing further delays for a deal which already looks troubled.
According to Reuters, the halt comes because the companies have not provided necessary input into an investigation initiated by the European Commission earlier this month. The regulator had been scheduled to issue its ruling by 17 October; once Qualcomm and NXP supply the necessary information, the clock will be restarted and deadline adjusted.
It had previously been claimed Qualcomm was looking to get the green-light for the deal without making any concessions. But with the EC expressing concern the deal could “lead to higher prices, less choice and reduced innovation in the semiconductor industry”, this may have been a tough ask.
Qualcomm this week extended its offer period for NXP shares, a step it has made several times previously. What is notable is that the number of shares tendered represents 12.5 per cent of the total – a figure that is actually trending downward.
Recent reports suggested some NXP shareholders were looking for a higher price from Qualcomm, arguing the offer undervalues the target company.
The US chip giant is looking to acquire NXP in order to boost its position beyond the mobile processor market, into areas such as IoT, automotive and security.