Qualcomm says NXP deal is dead

Andrew Cummings
December 5, 2018

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

"Although we were pleased to hear from President Trump and President Xi about the previously proposed acquisition of NXP by Qualcomm, the deadline for that transaction has expired", said the company.

Recently U.S. President Donald Trump and Chinese President Xi Jinping agreed on a 90-day truce on additional tariffs as both sides are looking to de-escalate tensions in a trade war that is proving damaging to both.

Chinese officials made no mention of Qualcomm-NXP in their official press statement about the meeting. During the months that followed it proved to be hard to get shareholder backing so Qualcomm was forced to increase their bid to $128 per share for NXP, for a total value of $44 billion pending regulatory approval.

Had it have gone through, it would have been the biggest semiconductor deal globally and its collapse helped exacerbate growing trade tensions between the U.S. and China.

Qualcomm has stated publicly that they have moved on from the deal and already paid NXP the $2 billion cancellation fee from their original agreement.

Qualcomm first announced plans to acquire NXP, based in the Netherlands, in October 2016. This acquisition could be seen as an example for other companies who intend to make multinational deals in the current uncertain environment.

Regulators in eight countries approved the deal, including in the USA and Europe. It is important to note that China initially withholds the approval of the merger between the two chipmakers.

Stacy Rasgon, an analyst with Bernstein Research, said in a research report that it would be risky to attempt a repeat of the NXP deal.

One major victim of the U.S.

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In a statement with CNN, President Trump said "If that deal came back to him, he would most likely approve it quickly".

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