China may finally approve Qualcomm buyout of NXP
After months of stalling, the Chinese State Administration for Market Regulation may finally rubber stamp US-based Qualcomm’s $44 billion acquisition of NXP Semiconductors of the Netherlands.
The Wall Street Journal reports that a delegation from Qualcomm had been sent to Beijing over the weekend to work out fine details of any protective measures for competition. The San Diego based company has been under pressure to extend its range of verticals and generate larger returns for investors, especially after it fended off a takeover attempt from Broadcom.
Chinese regulators have been stalling on reviews of major acquisitions involving US companies that do substantial business in China. This position is seen as part of the country’s trade standing against the United States after it hiked foreign steel tariffs and has threatened to increase taxes on other products.
The two have been negotiating through their differences with some observers accusing the parties of notching quid pro quo deals: the Commerce Department is reportedly revising its raft of punishments against ZTE after the tech manufacturer breached terms of a settlement made upon trade sanction violations.