Wearied Qualcomm gives up on acquiring NXP
Qualcomm’s proposed acquisition of NXP Semiconductors has been hanging in the balance for two years and has been held up by Chinese regulators that have had one reason or another to challenge Qualcomm for its anti-competitive behaviors or the United States for a tiff on tariffs. As the company derived more than two-thirds of its gross revenue last year, it’s imperative that Beijing signs off on the deal.
With the $44 billion deal seemingly mired in the economic politics of President Donald Trump, it may have run out of time. Qualcomm and NXP agreed from the outset that they would call off the deal on July 25 at 11:59pm Eastern and the former has announced that it intends to do so, barring any last minute developments tonight. The latter will receive a breakup fee.
Qualcomm had been pegging this acquisition as a means of reaching into new markets and obtaining returns that way. The company has been under immense pressure to generate profits after President Trump prevented Broadcom from acquiring it.
For more thoughts on the current state of Qualcomm, check out our Pocket Nightcap column.