Economy

No new bid for NXP Semiconductors: Qualcomm Inc

No new bid for NXP Semiconductors: Qualcomm Inc

Due to trade tensions Chinese antitrust authorities originally withheld their approval of the Qualcomm-NXP deal, causing it to eventually fall through. The scuppered deal was thought to be hurt by the China-US trade dispute.

Qualcomm first announced plans to acquire NXP, based in the Netherlands, in October 2016.

Qualcomm walked away in July from the mammoth deal to buy NXP after failing to secure Chinese regulatory approval.

However, Reuters reports that Qualcomm representatives made it clear through an email, that the company considers the matter closed.

American chip maker Qualcomm could reconsider acquiring rival Dutch semiconductor maker NXP after China said they were open to approving the previously blocked deal at a meeting between the United States and China at the G20 summit in Argentina, even though the U.S. company has denied the possibility for now, said a Taipei-based analyst on Monday.

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"Although that acquisition can not be resuscitated, Xi's comment reveals in plain sight that Chinese antitrust policy is inherently politicized", said Scott Kennedy, a China expert at the Center for Strategic and International Studies in a blog post.

Qualcomm and NXP did not lobby for the Trump administration to bring up the abandoned deal in its meeting with Xi and other Chinese officials on the sidelines of the G20 summit in Buenos Aires on Saturday, which was dominated by negotiations over trade tariffs, according to sources close to the companies.

When some deals collapse, they can't be revived - even by the most powerful politicians in the world. According to Bloomberg, China's Ministry of Commerce was concerned about Qualcomm's plans for patent licensing - but it is commonly supposed that the USA's threatened trade war with the country, in part down to a sales ban on ZTE products in the U.S., was a major factor. NXP has also announced its own $5 billion share buyback program.

Competition regulators in eight countries had approved the takeover. In July, Qualcomm paid NXP $2 billion to completely terminate the planned merger.