Qualcomm says it has 'no plans' to revive failed NXP bid

Roman Schwartz
December 5, 2018

In the past the European Union and Federal Trade Commission of the United States had opposed large corporate mergers for monopoly reasons, however, the Chinese government didn't publicly say they opposed the deal or give any insight into the matter, they just did not approve it by the original deadline, which was essentially the same thing.

Qualcomm had to pay NXP a $2 billion (approximately Rs. 14,100 crores) fee to terminate the deal.

"While we were grateful to learn of President Trump and President Xi's comments about Qualcomm's previously proposed acquisition of NXP, the deadline for that transaction has expired, which terminated the contemplated deal", a Qualcomm spokesperson is quoted as saying.

We have reported extensively on the US/China trade war escalations and how it affects consumers in the tech industry with the most recent update this weekend. It is important to note that China initially withholds the approval of the merger between the two chipmakers.

California-based Qualcomm first offered to buy NXP for about US$38 billion in October 2016 and upped its bid to US$44 billion in February as the original offer faced resistance from some NXP shareholders. Qualcomm cited China's cancellation of its regulatory application as one of the main reason why the deal did not push through.

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The acquisition deal between Qualcomm and NXP, worth $ 44 billion, ceased earlier this year because China did not grant timely approval.

Competition regulators in eight countries had approved the takeover. These regions include South Korea and the European Union.

As of this writing, it is still not clear whether Qualcomm and NXP will pursue the merger again.

In July, Qualcomm scrapped plans for a $44bn (£34bn) takeover of NXP after Chinese regulators signalled that they would block the takeover.

U.S. chipmaker Qualcomm Inc rejected a suggestion by the White House that its collapsed US$44 billion (RM184.1 billion) acquisition of Dutch peer NXP Semiconductors could be revived, saying the deal had been terminated as the deadline had expired.

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