Qualcomm Rules Out Another Bid for NXP After China Opens Door


"Rising interest rates, pressure on Qualcomm's core business and weaker semiconductor fundamentals further complicate matters", they said.

According to many analysts, the dissolution of the Qualcomm-NXP deal is just one of the many signs of how the trade war between China and the United States affects the global economy and trade.

"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".

Qualcomm told Reuters that although it welcomed the development, the deadline for the deal to be completed had passed and it had no interest in resurrecting the deal. "Qualcomm considers the matter closed and is fully focused on continuing to execute on its 5G roadmap".

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Qualcomm itself was a takeover target for Broadcom earlier in the year, but Trump blocked the proposed $140 billion attempt on national security grounds.

NXP did not immediately respond to an emailed request for comment on Monday.

According to reports, Qualcomm and NXP have been patiently waiting for two years to win the regulatory approval from China.

When some deals collapse, they can't be revived - even by the most powerful politicians in the world. Since Qualcomm has significant ties with Chinese OEMs, the chip maker had no choice but to agree with China's decision. Qualcomm used share buybacks of $5 billion to try to maintain its stock price for their shareholders after the deal was cancelled. Due to trade tensions Chinese antitrust authorities originally withheld their approval of the Qualcomm-NXP deal, causing it to eventually fall through. In July, Qualcomm paid NXP $2 billion to completely terminate the planned merger. In July 2018, the deal finally fell apart when China disapproved the deal. The $3.4 billion (about Rs. 24,000 crores) deal, announced in March, is still awaiting Chinese regulatory approval.