Qualcomm-NXP Deal Looking More Optimistic, Says Beijing Official: Report

Qualcomm’s $44 billion (roughly Rs. 2.99 lakh crores) deal to buy Dutch chipmaker NXP Semiconductors NV is looking “more optimistic now”, the Wall Street Journal quoted a Beijing official as saying.

Shares of NXP were up 5.5 percent at $112.52 (roughly Rs. 7,700) and Qualcomm was up 1.6 percent at $57.86 (roughly Rs. 3,900) in late morning trade.

The deal has been approved by eight of the nine required global regulators, with only the Chinese Ministry of Commerce (MofCom) continually stalling the takeover amid U.S.-China trade tensions.

Qualcomm and NXP declined to comment, while MofCom did not immediately respond to a request for comment.

Sources with knowledge of the matter told Reuters on Tuesday that the proposed takeover had yet to see any concrete breakthrough in China.

However, Chinese regulators this week have cleared two big deals – Toshiba Corp’s $18 billion (roughly Rs. 1.22 lakh crores) sale of its chip unit to a consortium led by US private equity firm Bain Capital, and Microchip’s $8.35 billion (roughly Rs. 56,800 crores) deal to buy Microsemi.

© Thomson Reuters 2018