Qualcomm Plans to Re-file NXP Takeover

Qualcomm plans to re-file its antitrust application to pursue the acquisition of NXP Semiconductors, according to sources


Qualcomm, a US chipmaker, plans to re-file an application with the government of China to clear its takeover of NXP Semiconductors, according to sources.

The chipmaker will re-file as early as Monday to give regulators additional time to come up with a decision to avert any collapse in the deal, which amounts to $44 billion.

On Saturday, Qualcomm backed off from its earlier antitrust application on account of China’s commerce ministry’s request. It was just a few days from the regulator’s deadline to decide on the takeover, which is on April 17, according to sources.

Accomplishing the NXP takeover is one of Qualcomm’s top priorities since it’s also the biggest such transaction in the industry. Qualcomm has been attempting to diversify its customer base in a move that will potentially make them the world’s leading chip supplier to the lucrative automotive market.

The San Diego-based chipmaker has already garnered eight approvals out of nine required global regulators in the process of finalizing the acquisition. The clearance from the Chinese government is the only one pending.

If Qualcomm re-files the application, it will give the Ministry of Commerce with an additional 6 months of time to review the application. This will also be the second time that the business will re-file an its antitrust application with the Ministry of Commerce.

Takeover to be Impeded by US-China Trade Disputes


On the flip side, analysts believed that the Ministry’s decision on the takeover will not likely come before the trade and economic spats between China and the United States are settled.

Erick Robinson, the director of patent litigation and licensing at Beijing East IP, said, “Qualcomm is going to have to wait for Washington and Beijing to resolve their differences before this deal is going to move forward.”

Earlier this month, the White House proposed $50 billion worth of tariffs on around 1,300 industrial, technology, transport, and medical products from China. This move was intended to compel the Asian country to change its intellectual property measures.

As a result, Beijing responded with another list of proposed duties amounting to $50 billion on US imports.

China doesn’t plan to block the takeover deal “but they are holding it hostage,” according to Andrew Gilholm, who is the director of analysis for China and North Asia at Control Risks, a risk consultancy.

He also added that Qualcomm was facing the “perfect storm.”

“It’s at the heart of everything: there’s a national security angle, there’s a competitive and Chinese industrial policy angle – so it’s caught up in all the trade war stuff,” he said.


Subscribe to FSM News and fill yourself in on the freshest marketing news. We provide comprehensive and latest news and analysis regarding Forex, commodities, technology, financial, economy, and more.

I Like this Article

Start Trading with Top Industry Brokers

Company Regulation Spread on Majors Deposit Info



  • Technology
  • General

Amazon Seals $400M Salesfo...

Posted on May 27, 2016 And Got 601 Likes


Google Gives Up Robotics D...

Posted on May 31, 2016 And Got 375 Likes


GE Acquires Metem Corporat...

Posted on April 4, 2016 And Got 327 Likes


Apple invests $1B in Didi ...

Posted on May 13, 2016 And Got 315 Likes


MSFT Stock Rose Under Saty...

Posted on April 7, 2016 And Got 296 Likes


Coca-Cola Amatil Shares Di...

Posted on October 24, 2016 In Consumer Products And Got 875 Likes


Dollar Remains Roughly Hig...

Posted on April 6, 2016 In Forex And Got 763 Likes


Ways To Use The Golden Cro...

Posted on September 16, 2016 In Trading Strategies And Got 678 Likes


Amazon Seals $400M Salesfo...

Posted on May 27, 2016 In Technology And Got 601 Likes


Dollar Steadies Against Eu...

Posted on May 27, 2016 In Forex And Got 567 Likes