Sino-U.S. trade tensions and Qualcomm mergers and acquisitions, NXP hit a new low of 4 months

The Wall Street Journal quoted a source on April 13, citing sources reporting that with China, the US trade tensions are heating up, China is slowing down the review of Qualcomm Inc. and Bain Capital. China is the only country that has not yet approved Qualcomm. The acquisition of NXP Semiconductors (NXPI.US) and the US private equity firm Bain Capital are the first countries in the alliance to acquire Toshiba’s chip division. A senior Toshiba executive revealed that the review process has basically been stagnant due to the tight trade situation. .

Qualcomm’s CEO Steve Mollenkopf once said that Qualcomm would be expected to become a big driver of autonomous driving technology after the acquisition of NXP. Sources pointed out that Mollenkopf worried that Beijing authorities might disrupt the acquisition transaction. When he met with Wang Qishan, Vice President of China, on March 27th, This topic was mentioned. According to the agreement signed by Qualcomm and NXP, the deadline for this acquisition can be extended twice automatically. The second extension clause was touched in January this year and the deadline was extended to April. On the 25th, however, the two parties can still renew their agreement to extend the deadline.

Qualcomm stated in an open letter issued to shareholders on January 16 that the NXP acquisition will create value for shareholders, and in the unlikely event that it will not be completed successfully, it will be replaced by large-scale stock repurchases.

IHS Markit announced on March 28th that in 2017 Qualcomm’s ranking in the global semiconductor market dropped from 3rd in 2016 to 6th, while NXP was ranked 9th.

CBS News reported on March 23, according to statistics from UBS, that Qualcomm had a 63% revenue share from the Chinese market.

The Harvest XQ global winner quote system showed that NXP dropped 0.64% to $113.44 on April 13, the lowest level since November 30, 2017; the weekly fell by 0.25%, and closed for the seventh consecutive week.