Briefing: Xi may consider Qualcomm-NXP deal again, White House says

Briefing: Xi may consider Qualcomm-NXP deal again, White House says

The dissolution of the deal is one of the most apparent repercussions of the escalating trade between China and the United States, two of the largest economies in the world. The planned deal was first agreed between the two companies in October 2016.

Qualcomm said it's not interested in reviving its collapsed acquisition of NXP Semiconductors.

President Trump, who met with Chinese President Xi Jinping over the weekend, said: "If that deal came back to [Xi], he would most likely approve it quickly, which is a big thing". During the months that followed it proved to be hard to get shareholder backing so Qualcomm was forced to increase their bid to $128 per share for NXP, for a total value of $44 billion pending regulatory approval.

"Qualcomm considers the matter closed and is fully focused on continuing to execute on its 5G road map", it added.

Chinese regulators have not made any immediate comment.

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Qualcomm said in a court hearing that Apple is $7 billion behind in patent royalty payments to the company, that supplie parts for the iPhone.

Qualcomm and NXP did not lobby for the Trump administration to bring up the abandoned deal in its meeting with Xi and other Chinese officials on the sidelines of the G20 summit in Buenos Aires on Saturday, which was dominated by negotiations over trade tariffs, according to sources close to the companies. Qualcomm has a large presence in China so they were not left with any real options except to cancel the deal. The American chipmaker therefore had to pay a so-called "break-up fee" of 2 billion dollars to NXP. Mellanox did not immediately respond to requests for comment. It has spent more than $20 billion (roughly Rs. 1.4 lakh crores) in share buybacks in the last 12 months.

Competition regulators in eight countries had approved the takeover.

Telecommunications company Qualcomm ruled out any chance of a return to its abandoned bid for NXP Semiconductors NV after U.S. and Chinese political leaders appeared to open the way for possible approval of the transaction.

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