Qualcomm Abandons $44 Billion NXP Acquisition

AlphaAtlas

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In what was reportedly set to be "the biggest semiconductor deal globally," Qualcomm announced plans to acquire NXP Semiconductor back in 2016. But, as U.S. and China relations deteriorated, the Chinese government later claimed they would block the deal, and Qualcomm announced that they were abandoning the effort. Yesterday, China's president said the Chinese government would let the deal go through after all, but a Qualcomm official insists that the deal is is still dead.

"Qualcomm considers the matter closed," a Qualcomm spokesman said. "While we were grateful to learn of President Trump and President Xi's comments about Qualcomm’s previously proposed acquisition of NXP, the deadline for that transaction has expired, which terminated the contemplated deal."
 

McCartney

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Mar 6, 2006
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it says NXP are Dutch and Qualcomm are American.

are a lot of NXP's assets held/operated in China? was hoping maybe the main article could accentuate the connection to china so readers can better understand.

thx
 

Laowai

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it says NXP are Dutch and Qualcomm are American.

are a lot of NXP's assets held/operated in China? was hoping maybe the main article could accentuate the connection to china so readers can better understand.

thx
Needed approval from Chinese anti-trust somethingorother because they do a lot of business in China and this was a massive deal.
 

Rahh

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Doesn't mean they couldn't strike a new deal but sounds like they have moved on.
 

TrailRunner

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They had a bunch of cash on hand to complete the NXP deal. They had announced an intention to begin stock buybacks with that if they were blocked from the deal. The deal was blocked, and the stock buybacks have commenced.
So I'm guessing that even if they wanted to proceed at this point, between what has been spent on the buybacks and what is planned, they probably couldn't swing it.
Their stock price, which had been sagging, has been given a boost thanks to the stock buybacks, but it clearly would have been better long-term to spend that money on strengthening their tech portfolio vs making the short-term holders happy.
 
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