[H]ardOCP: Qualcomm Abandons $44 Billion NXP Acquisition

Chinese President Xi Jinping

Chinese President Xi Jinping

"Qualcomm considers the matter closed", a Qualcomm spokesman said.

"If that deal came back to him, he would most likely approve it quickly, which is a big thing", said Trump according to reports from Buenos Aires. After the talks, the Chinese government said it is "open to approving the previously unapproved" Qualcomm - NXP deal, "should it again be presented".

The statement about revisiting Qualcomm-NXP was included in the White House release, but not the one from the China side.

In July, Qualcomm, which is based in California, confirmed that the company is terminating its proposed takeover of its rival NXP which is based in The Netherlands. During the months that followed it proved to be hard to get shareholder backing so Qualcomm was forced to increase their bid to $128 per share for NXP, for a total value of $44 billion pending regulatory approval. NXP has also announced its own $5 billion (around Rs. 35,200 crores) share buyback program. The company will instead focus on making its 5G transition.

We have reported extensively on the US/China trade war escalations and how it affects consumers in the tech industry with the most recent update this weekend.

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Regulators in eight countries approved the deal, including in the US and Europe.

By allowing the Qualcomm deal to run itself out, Beijing was seen to be flexing its economic muscles while retaining negotiating power with a Trump administration that has threatened to slap tariffs on virtually all Chinese imports. It is important to note that China initially withholds the approval of the merger between the two chipmakers.

One major victim of the U.S. -China trade tensions will last. Apparently, Qualcomm has pursued the acquisition of NXP for the company's strength in automotive chips in order to diversify beyond the smartphone field.

Kudlow also told reporters that a meeting with German carmakers this week was not meant to focus on possible tariffs, which Trump still held in his "quiver".

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