China: Qualcomm to refile NXP takeover application

Qualcomm will refile an application with the Chinese government to approve the acquisition of NXP Semiconductors, according to Reuters.

The proposed deal, in which Qualcomm will pay roughly US$44 billion, has become complicated due to political issues between China and the United States, both of which are embroiled in a fight over trade deals and tariffs.

According to Reuters, the US chipmaker may file a new application as early as Monday, April 16, following the withdrawal of an earlier antitrust application on Saturday.

China’s commercial regulators, the Chinese Ministry of Commerce (Mofcom), originally held a deadline of April 17 to decide whether or not to approve the acquisition.

However, by withdrawing and refiling, the news agency’s sources suggest that regulators will be given up to six more months to make a decision and this will potentially prevent the deal from collapsing outright.

Qualcomm has been attempting to acquire NXP since 2016. The company originally offered US$110 per share, later ramped up to US$127.50 per share to sweeten the deal for NXP shareholders.

Full Content: Reuters

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