Qualcomm to meet Chinese regulators in attempt to get last approval needed for NXP purchase

Qualcomm to meet Chinese regulators in attempt to get last approval needed for NXP purchase
Lost in the soap opera drama surrounding ZTE and the broader issues surrounding the trade war with China, is Qualcomm's $44 billion offer to buy NXP Semiconductors. Originally announced in October 2016, Qualcomm has received regulatory approval from eight of the nine countries required; the lone holdout is China. And the latter is reportedly not going to sign off on the transaction without some progress being made on its trade talks with U.S. negotiators.

Looking to generate some movement on the issue, Qualcomm is meeting with Chinese antitrust regulators in Beijing this coming week. Representatives from the mobile chip maker had talks characterized as "productive" with members of the State Administration for Market Regulation (SAMR) in Beijing late last week. Qualcomm says it is now "cautiously optimistic" that the deal will be approved by China. The Wall Street Journal wrote yesterday that people familiar with the situation say that China will approve the transaction in the next few days. Last month, a spokesman for China’s Commerce Ministry said that a preliminary review of a Qualcomm purchase of NXP uncovered "issues that are hard to resolve, making it difficult to eliminate the negative impact."

Last week, China did approve the purchase of Toshiba's memory chip unit to private equity firm Bain Capital for $18 billion. Apple is part of a group that will offer financial support for the transaction.

NXP is the co-inventor of the NFC chips found in many smartphones to facilitate mobile payment services and connectivity between two devices. The company also provides chips for the automotive industry, IoT and more.

source: WSJ, Reuters

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5 Comments

1. bucknassty

Posts: 1353; Member since: Mar 24, 2017

i wonder how much of the zte mess will affect this

2. TheOracle1

Posts: 2340; Member since: May 04, 2015

This IS the ZTE deal and the reason Trump backed down in addition to the other Chinese customers for US goods. The whole relationship in US-China trade is so intertwined that a partisan or purely security issue is nonsense. Now if you want to sell it to Billy-bob in West Virginia or Texas then that's a different story. No one can legislate for the inbreeding and stupidity in Trumps base.

5. bucknassty

Posts: 1353; Member since: Mar 24, 2017

Not everyone in Texas is a trump supporter :)

3. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Aha, U.S. is playing a dirty game. This is why they so called banned ZTE because leverage! The Chinese government will agree to this deal QC taking NXP over very fast. The U.S. Government will lift the ban on ZTE.......dirty games!

4. mootu

Posts: 1530; Member since: Mar 16, 2017

It's actually the other way round. This deal was supposed to have been done and signed back in April. When the US decided to introduce the ZTE ban China said straight away that this would put the QC takeover of NXP on thin ice and that they would not sign off on the takeover. It's actually the Chinese that have used this to strongarm the US into repealing the ZTE ban. Qualcomm are desperate for this takeover to happen as the smartphone market is mature and they need to get into the huge untapped smart automotive market. NXP is the big player in this market and the Chinese know this and used it pressure the US over ZTE

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