Qualcomm won't revive NXP acquisition bid - Hardware

Qualcomm

Qualcomm has no intention of reviving plans to acquire NXP Semiconductors, despite the suggestion from the United States government that the regulatory roadblock the companies had been facing in China has been cleared.

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.

That may mean that NXP's board "could be open to the idea" of an acquisition if they are presented with another offer from Qualcomm, the analysts said.

Qualcomm has said there is no chance of it reviving the proposed takeover of Dutch rival NXP Semiconductors despite an apparent thawing in political opposition. The email declared that though the company is grateful for the reconsideration and the comments, the deadline for the transaction has expired and hence the contemplated deal has been terminated.

Qualcomm considers the matter closed.

China's foreign ministry declined to comment on Qualcomm during a regular media briefing on Monday.

Qualcomm had to pay NXP a $2 billion (approximately Rs. 14,100 crores) fee to terminate the deal. Qualcomm has a large presence in China so they were not left with any real options except to cancel the deal. It is important to note that both parties, Qualcomm and NXP, have already walked away from the deal.

Qualcomm moved ahead with a stock buyback of about $30 billion that it had promised shareholders should the NXP deal fall apart. Xilinx is now vying to acquire Israeli chip maker Mellanox Technologies after it chose to run an auction to sell itself, according to people familiar with the matter.

"If that deal came back to him, he would most likely approve it quickly", Trump said. But, as USA and China relations deteriorated, the Chinese government later claimed they would block the deal, and Qualcomm announced that they were abandoning the effort this year.

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