Qualcomm has no interest in reviving NXP takeover

Qualcomm

What happened: President Xi Jinping said he would be willing to consider approving U.S. chip-maker Qualcomm's once-failed $44 billion bid for NXP Semiconductors if the option were presented to him again, according to the White House.

The agreement between Trump and Chinese President Xi Jinping had made it further for China to approve the deal for Qualcomm to acquire NXP Semiconductors after Chinese regulators prevented the transaction earlier this year. "Restarting the acquisition of NXP will help Qualcomm effectively disperse future operational risks without betting fully on smartphones", said Yao, adding that he believes the restart of the NXP deal should still be under consideration at Qualcomm despite its assertion the deal had been terminated as the deadline had expired.

But in a media statement, Qualcomm said the deadline for the planned transaction has expired, and the company now "considers the matter closed", with no intention of reviving talks. NXP declined to comment.

Qualcomm had to pay NXP a $2 billion (approximately Rs. 14,100 crores) fee to terminate the deal. It is important to note that both parties, Qualcomm and NXP, have already walked away from the deal.

After the meeting, Trump said they had reached an "incredible deal".

Qualcomm moved ahead with a stock buyback of about $30 billion that it had promised shareholders should the NXP deal fall apart.

One example could be Xilinx, a United States provider of chips used in communications network gear and consumer electronics that has a big presence in China.

A more near-term test being watched by dealmakers is KLA-Tencor Corp pending acquisition of fellow semiconductor equipment maker, Israel's Orbotech Ltd. The massive merger between Qualcomm and NXP have been approving in eight other jurisdictions. KLA-Tencor's CEO said on the company's last earnings call that he expects the deal to close by year end.

Telecommunications company Qualcomm ruled out any chance of a return to its abandoned bid for NXP Semiconductors NV after USA and Chinese political leaders appeared to open the way for possible approval of the transaction.

USA lawmakers also passed reforms earlier this year that increased CFIUS' scrutiny of deals.

Related:

Comments

Latest news

Sri Lanka president weighs backing down in crisis over parliament
They maintained that in terms of Article 48 of the Constitution, the Cabinet stood dissolved from November 14, 2018. Mr Rajapaksa said in a statement his Government would lodge an appeal with the Supreme Court.

George H.W. Bush's service dog, Sully, is honored: 'Mission complete'
The number is a reference to Bush's place in the roster of America's presidents. Bush, even once describing him as the "worst" president in US history.

Marvel reportedly wants to follow Black Panther's success with Shang-Chi film
As Marvel Studios prepares for Captain Marvel , the studio is already thinking about it's next blockbuster. With the right director and cast, Marvel could do something very special with a Shang-Chi story.

Usman Khawaja's brother arrested by counter-terrorism police over fake terror plot
Usman Khawaja was born in Pakistan and was first selected for Australia in the Ashes series of 2010. It did not appear from the charges that the list was linked to any credible assassination plots.

The Redskins Announced That Colt McCoy’s Season Is Over
The former New York Jets first-round pick was signed by the Redskins when Smith suffered a ghastly broken leg on November 18. McCoy took over and made his second straight start after the gruesome season-ending leg injury to Alex Smith .

Other news