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Qualcomm has no plans to revive NXP deal

04 Dec 2018
00:00
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Qualcomm has no intention of reviving plans to acquire NXP Semiconductors, despite the suggestion from the US government that the regulatory roadblock the companies had been facing in China has been cleared.

Qualcomm abandoned its planned $44 billion merger with Dutch rival NXP in July after failing to secure the required Chinese regulatory approval.

At the time, the collapsed merger was considered one of the major casualties of the trade war between China and the US.

But last weekend, following trade talks between between US president Donald Trump and Chinese president Xi Jinping, the US White House announced that China is now open to clearing the Qualcomm-NXP deal should it be presented to them for approval again.

But in a media statement, Qualcomm said the deadline for the planned transaction has expired, and the company now “considers the matter closed,” with no intention of reviving talks.

According to Reuters, people close to the two companies have revealed that they did not lobby the US government to bring up the aborted merger during the negotiations, and were surprised to see it resurface as an issue.

Qualcomm has already embarked on a plan to return the money it would have used to fund the NXP purchase through a $30 billion stock repurchase plan and more than $20 billion in share buybacks.

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