Qualcomm announced the failure to acquire NXP
Qualcomm, a well-known American chip company, said that it would abandon its plan to acquire NXP Semiconductors for $44 billion on Wednesday. China, one of the countries that must approve the agreement, refused to approve the merger.That is the reason why Qualcomm can not acquire NXP.
The merger expired at 11:59 pm on Wednesday night, which has been 21 months since Qualcomm first proposed the acquisition of Dutch chip company NXP. Previously, Beijing did not express its position on the delay in mergers and acquisitions. Qualcomm believed that Beijing was not ready to approve.
Qualcomm CEO Steven Morenkov said in a statement on Wednesday afternoon: "If there is no change, we are ready to terminate the NXP contract at midnight ." If it is cancelled, Qualcomm will also pay for NXP. A $2 billion cancellation fee.
The merger must be approved by nine related countries. China is one of them, and the other eight have already made the decision. There is currently a trade war between the United States and China.Maybe it influence the process of acquisition.
Headquartered in San Diego, Calif., Qualcomm is a global leader in 3G, 4G and 5G technologies, providing technology licensing to some of the world's largest manufacturers, covering virtually all telecommunications equipment and consumer electronics in the world. Brand.
The acquisition of NXP Semiconductors is critical to Qualcomm's expansion of its chip business landscape. Qualcomm chips focus on mobile computing and communications, while NXP chips focus on smart cars, the Internet of Things, mobile payments and more. Unfortunately, this huge acquisition ended in failure, just like the failure of Broadcom’s acquisition of Qualcomm.
