American chipmaker, Qualcomm was able to fend off the voracious attempt by Broadcom to take over the company. It did this with the help of the U.S. government and it was hoping that its deal with NXP will pull through. However, after the ZTE ban, Qualcomm’s pursuit to take over NXP semiconductors took a back seat as the Chinese government kept a sealed lip. Qualcomm was optimistic that the Chinese government will give its approval since the ban on ZTE has been lifted but after weeks of waiting, Qualcomm finally gave up on its pursuit of NXP.
Gizchina News of the week
According to Qualcomm’s plan, it will open stock repurchases up to $30 billion to create value for shareholders. In 2016, Qualcomm officially announced the acquisition of NXP, which cost $44 billion, but the acquisition needs to be approved by regulatory authorities in nine countries including the United States, the European Union, China, South Korea, Japan, and Russia. However, since Qualcomm could not get all the approval it needs, the deal fell through and as compensation, it will pay NXP $2 billion.
