Xi Open to Blessing Qualcomm-NXP Deal if Presented Again, US Says

Qualcomm Rules Out Another Bid for NXP After China Opens DoorMore

Qualcomm Rules Out Another Bid for NXP After China Opens DoorMore

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 Chinese government's official statement released following the talks did not mention a discussion of the Qualcomm deal, however. "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.

However, Reuters reports that Qualcomm representatives made it clear through an email, that the company considers the matter closed. However, the Chinese regulators insisted that antitrust issues remained, hence their refusal to give the green light - they denied the episode had anything to do with the trade war.

Now, Yao, senior analyst at TrendForce says that Qualcomm could be forced to reconsider the move even after backing out because of unimpressive mobile chip sales this year. NXP declined to comment. But Qualcomm has already paid a breakup fee in the deal and begun a $21 billion stock buyback program, they said, limiting its financial flexibility. It has spent more than $20 billion (roughly Rs. 1.4 lakh crores) in share buybacks in the last 12 months. Now, chip companies may be more optimistic about their regulatory chances in China. 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. Mellanox did not immediately respond to requests for comment. The massive merger between Qualcomm and NXP have been approving in eight other jurisdictions.

"If that deal came back to him, he would most likely approve it quickly", Trump said. According to Bloomberg, China's Ministry of Commerce was concerned about Qualcomm's plans for patent licensing - but it is commonly supposed that the USA's threatened trade war with the country, in part down to a sales ban on ZTE products in the U.S., was a major factor.

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