Briefing: Xi may consider Qualcomm-NXP deal again, White House says
Dec 05 2018
"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 representative said via email.
The United States expects China to take immediate action to cut tariffs on USA vehicle imports and end intellectual property theft and forced technology transfers as the two countries move toward a broader trade deal, a White House official said on Monday.
However, Qualcomm Inc said on Monday it was not looking to revive its abandoned $44 billion acquisition of Dutch peer NXP Semiconductors NV. "Qualcomm considers the matter closed and is fully focused on continuing to execute on its 5G roadmap".
The Chinese government's official statement released following the talks did not mention a discussion of the Qualcomm deal, however. Further aggravating this is the fact that Qualcomm even paid a $2 billion penalty in order to distance itself away from the deal. The deal eventually failed in July after a regulatory deadline passed without approval from China's State Administration for Market Regulation (SAMR), which oversees antitrust regulation in the country.
Qualcomm has already embarked on a plan to return the money it would have used to fund the NXP purchase through a $30 billion stock repurchase plan and more than $20 billion in share buybacks.
After the meeting, Trump said they had reached an "incredible deal".
"If that deal came back to him, he would most likely approve it quickly, which is a big thing", said Trump according to reports from Buenos Aires. Vice Commerce Minister Wang Shouwen told reporters that China and the United States would step up talks to remove the existing 25 percent tariffs (on some other products), but gave no timeframe. NXP has also announced its own $5 billion (around Rs. 35,200 crores) share buyback program.
We have reported extensively on the US/China trade war escalations and how it affects consumers in the tech industry with the most recent update this weekend.