World's largest smartphone chip-maker rejected a suggestion by the White House that its collapsed $44 billion acquisition of Dutch peer NXP Semiconductors could be revived, saying the deal had been terminated as the deadline had expired.
Trump and Chinese President Xi Jinping met in Buenos Aires Saturday, and Trump told reporters that Xi said he would reconsider China's prior decision to withhold approval of the planned $44 billion merger between Qualcomm and NXP. After the talks, the Chinese government said it is "open to approving the previously unapproved" Qualcomm - NXP deal, "should it again be presented".
Qualcomm scrapped its proposed $44 billion bid for rival chip-maker NXP in July after an nearly two-year wait for approval, as tensions between the US and China escalated. The email declared that though the company is grateful for the reconsideration and the comments, the deadline for the transaction has expired and hence the contemplated deal has been terminated. It is important to note that both parties, Qualcomm and NXP, have already walked away from the deal.
Qualcomm had to pay NXP a $2 billion (approximately Rs. 14,100 crores) fee to terminate the deal. "If at the end of this period of time (90 days), the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%", the statement said.
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From there, he wrote a monthly column in the Washington Post in which he criticised the policies of Mohammed bin Salman . She was absent from last week's briefing by the secretaries of state and defence, angering some in Congress.
Qualcomm moved ahead with a stock buyback of about $30 billion that it had promised shareholders should the NXP deal fall apart.
A Qualcomm representative didn't immediately respond to a request for comment. The $3.4 billion (about Rs. 24,000 crores) deal, announced in March, is still awaiting Chinese regulatory approval.
Thus far, other high-profile mergers and acquisitions involving USA companies in other sectors have received Chinese approval. 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.