NXP Semiconductors is ready for a takeover.
Once the approval from China is obtained, Qualcomm Inc. will take over the company for $44 billion. This once again depends on the ban by the US on the ZTE Corp.
An announcement to this effect of the deal is due any time now say internal sources. The deal has been put off for 18 months amidst talks between the two big countries on a trade war.
If this deal gets through, this will be one of the biggest acquisitions by Qualcomm. Qualcomm is also aiming to increase its shareholder value through repurchasing new stock.
Talks have been going on from October 2016 when the talks were put off with Broadcom Inc’s bid and then came the trade war that has further postponed the deal from being clinched.
China is the largest importer of semiconductors and plays a major role in M&A transactions. The countries policy against using US technology brought a ban on the ZTE, as it favored using products made from within the country. The seven-year ban has been removed with a $1.3 billion fine on trade sanction violations.
The anti-trust regulator’s approval from China, towards the investment from Qualcomm, was made early this month on the designing of Smartphone chipsets. The antitrust reviews have been going on for a long period.
Market Regulatory officials from the State Administration will be holding a meeting with representatives from Qualcomm.
Further, Beijing will be making its official approval announcement soon, regarding the Qualcomm concessions to be made.
With trade talks between US and China showing some signs of thawing, the deal will be made soon, feel sources.
Discussions are on between Qualcomm and ZTE Corp with announcements to be heard soon. Christiano Amon, the president of Qualcomm was seen in China last week when he attended an industry expo in the country.
Before turning out to be a full-time writer and editor, James Tidwell was a blogger who wrote his outlooks and viewpoints relating to Entertainment and Sports. Owing to his interest and absolute fineness of playing with world beautifully, he was appointed to dabble in Entertainment and Sports world.