WSJ: Qualcomm to get European approval to purchase NXP for $39 billion

WSJ: Qualcomm to get European approval to purchase NXP for $39 billion
Qualcomm, the company that designs the Snapdragon mobile chipsets used on the majority of smartphones, is expected to be given approval today from European Anti-trust regulators to proceed with its $39 billion purchase of semiconductor manufacturer NXP. In order to obtain this approval, Qualcomm had to agree to certain conditions. For example, the San Diego based company cannot buy NXP's standard essential patents, and Qualcomm had to promise that rival products will still work with NXP's.

The deal was originally proposed by Qualcomm back in October 2016, and this past November Qualcomm became an acquisition target itself as fellow chip designer Broadcom made an unsolicited bid for the company. The U.S. agencies have already given Qualcomm the green light to buy NXP. After the expected EU approval, the deal will still require Chinese agencies to sign off on it.

The European anti-trust regulators were concerned that after the NXP acquisition, Qualcomm would have a high market share in the region for cellular chipsets, and chips used for NFC connectivity. The EU previously accused Qualcomm back in 2015 for paying Apple to use its chips exclusively. It also accused Qualcomm of selling certain chips below cost to eliminate a competitor from the market.

The approval from the EU is expected to be announced next week.

source: WSJ

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13 Comments

1. Phonehex

Posts: 767; Member since: Feb 16, 2016

European Anti-trust regulators - A bunch of dolts.

7. notfair

Posts: 755; Member since: Jan 30, 2017

At least we have fair regulators not like in the USA were the democracy is crushed day by day. Take the Net Neutrality as an example. f**k off

12. epdm2be

Posts: 824; Member since: Apr 20, 2012

Oh please, they're dumbf**ks instead of keeping the tech in European hands as both broadcom and nxp (formerly from philips) are european, they're selling the stuff to the chinese as Qualcomm is chinese with American money. Idiots. And then they wonder why talent is leaving Europe to be replaced with poor "fugitives" from north-african descent or even worse (as if we haven't got enough trouble with our own poverty).

11. umaru-chan

Posts: 371; Member since: Apr 27, 2017

That's really Funny coming from a racist dumb bast**d like you.

2. makatijules

Posts: 835; Member since: Dec 11, 2017

So if they can't BUY the non-essential patents, then how will they be able to make sure the stuff works? I mean they are BUYING the company. Would they not automatically own all the patents? How do you license patents from a company you own? Is NXP still going to retain ownership of those patents? If so then what is Qualcomm actually buying? The request is confusing. Can someone explain?

4. Back_from_beyond

Posts: 1439; Member since: Sep 04, 2015

They're not allowed to buy the standard essential patents, industry wide used patents. Non essential patents will fall into Qualcomm hands. The standard essential patents will probably go into a separate holding and profits won't go to Qualcomm, but those who own them. It keeps Qualcomm from leveraging them. So any technology in development or non essential patented tech will be Qualcomm's property. Still a very worthwhile purchase.

5. bucknassty

Posts: 1353; Member since: Mar 24, 2017

actually there are reasons why you have to license patents from your own company... it like they are independents under the same name.... i use to have to pay another division in my company to use their software...

3. bucky

Posts: 3791; Member since: Sep 30, 2009

how is it possible that this does affect competition? Any company worth 39b. should not be allowed to be bought out...

6. XperiaFanZone

Posts: 2279; Member since: Sep 21, 2012

Why are the American companIes buying everything, f**k off

8. makatijules

Posts: 835; Member since: Dec 11, 2017

You should be asking, why are these companies selling to Americans. Anyways. of it wasn't for America, the world would look like the Sahara dessert, because everyone else would kill everybody with nuclear weapons. Americans are the nuclear deterrent.

13. XperiaFanZone

Posts: 2279; Member since: Sep 21, 2012

Thanks for the laugh, needed a good one. As well as the fact that you reported the guy who responded to you

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