Despite efforts from both and US and China to simmer down the heightened trade tensions between world’s biggest economies, it seems things aren’t exactly playing out the way they were supposed to.
After their meeting ended, US President Donald Trump had suggested that China was “open to approving the previously unapproved” deal for Qualcomm to acquire NXP “should it again be presented”. While the gesture was welcomed, it hasn’t borne any fruits whatsoever.
In a recent statement to Reuters, Qualcomm has rejected the proposition on the grounds that the deadline of the deal has expired. World’s largest smartphone chip-maker rejected a suggestion by the White House that its collapsed $44 billion acquisition of Dutch peer NXP Semiconductors could be revived, saying the deal had been terminated as the deadline had expired.
Qualcomm stated in an email,
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.
Qualcomm considers the matter closed.
To put some context, Qualcomm had proposed a massive $44 Billion acquisition Dutch semiconductor maker NXP earlier in 2016. The deal however did not go through and was called off in July this year, due to a roadblock created by Chinese regulatory bodies. This was also one of the first serious implication that the US-China trade tension had over the overall business climate.
Post rejection of their offer, Qualcomm has already paid a hefty $2 Billion to NXP for terminating the offer and announced a $30 billion stock repurchase plan to help soothe investor sentiments. NXP has also announced its own $5 billion share buyback program.