Qualcomm has no interest in reviving NXP takeover

Qualcomm has said there is no chance of it reviving the proposed takeover of Dutch rival NXP Semiconductors despite an apparent thawing in political opposition.

The chip giant had agreed a $44 billion deal for NXP but withdrew in July after Chinese regulators declined to grant regulatory approval at a time of high trade tensions between the country and the US.

Qualcomm NXP

Qualcomm had been trying to acquire NXP, best known for its semiconductor work in self-driving cars, for more than two years, but missed a deadline to confirm its continued interest in the deal after months of delays from Beijing and paid NXP $2 billion to terminate the transaction.

However following talks between US President Donald Trump and Chinese President Xi Jinping at the G20 Summit in Argentina, Washington said the Chinese government was willing to grant the necessary approvals.

Qualcomm told Reuters that although it welcomed the development, the deadline for the deal to be completed had passed and it had no interest in resurrecting the deal.

“While we were grateful to learn of President Trump and President Xi’s comments about Qualcomm’s previously proposed acquisition of NXP, the deadline for that transaction has expired, which terminated the contemplated deal,” a Qualcomm spokesperson is quoted as saying. “Qualcomm considers the matter closed.”

Qualcomm itself was a takeover target for Broadcom earlier in the year, but Trump blocked the proposed $140 billion attempt on national security grounds. The perception was that Broadcom is more concerned with acquisitions than R&D, and any let up could allow Huawei to leapfrog Qualcomm, and thereby the US, in 5G.