Qualcomm Says No Plans to Revive the Abandoned $44 Billion NXP Acquisition

Qualcomm Says No Plans to Revive the Abandoned $44 Billion NXP Acquisition

Qualcomm Says No Plans to Revive the Abandoned $44 Billion NXP Acquisition

What happened: President Xi Jinping said he would be willing to consider approving USA 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.

US chipmaker Qualcomm Inc. has ruled out any possibility of a renewed bid for rival NXP Semiconductors after President Xi reopened the doors for a new bid during his meeting with President Trump over the weekend.

The Chinese president's openness to the deal was a sign of further cooperation on multiple issues, including corporate mergers, Kudlow told reporters.

(NASDAQ:QCOM) agreed to purchase NXP Semiconductors (NASDAQ:NXPI) for $38 billion, or $110 per share.

Qualcomm had been trying to acquire NXP, best known for its semiconductor work in self-driving cars, for more than two years, but missed a deadline to confirm its continued interest in the deal after months of delays from Beijing and paid NXP $2 billion to terminate the transaction.

"Qualcomm considers the matter closed and is fully focused on continuing to execute on its 5G road map", it added.

"Although that acquisition can not be resuscitated, Xi's comment reveals in plain sight that Chinese antitrust policy is inherently politicized", said Scott Kennedy, a China expert at the Center for Strategic and International Studies in a blog post.

Qualcomm said in a court hearing that Apple is $7 billion behind in patent royalty payments to the company, that supplie parts for the iPhone. NXP declined to comment. Qualcomm has a large presence in China so they were not left with any real options except to cancel the deal. NXP has also announced its own $5 billion share buyback program.

A Qualcomm representative didn't immediately respond to a request for comment. The $3.4 billion (about Rs. 24,000 crores) deal, announced in March, is still awaiting Chinese regulatory approval.

"If that deal came back to him, he would most likely approve it quickly, which is a big thing", said Trump according to reports from Buenos Aires.

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.

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