At noon on July 26th, Beijing time, China’s State Administration of Markets has not announced whether it will approve Qualcomm’s acquisition of NXP Semiconductors at noon today. Due to 11:59 pm on July 25th, US Eastern Time (Beijing time on July 26th at noon 11 :59) is the deadline for Qualcomm to acquire NXP, which means that the world's largest mobile phone chip maker has abandoned its $44 billion acquisition of NXP.
It is not yet ruled out that Chinese regulators will subsequently approve, and Qualcomm restarts the possibility of acquiring NXP transactions. But a person in charge of Qualcomm previously told the First Financial reporter: 'After giving up, you can no longer re-start (M), because the contract Once the agreement is triggered, it is irreversible. '
According to the previous acquisition agreement between Qualcomm and NXP, Qualcomm could not complete the transaction if it was not approved by the Chinese regulatory authorities before the deadline, and it would need to pay NXP a $2 billion cancellation fee.
Qualcomm said in an earnings report released earlier this morning that the company will not extend the acquisition agreement that will expire before midnight on Wednesday, US time. Qualcomm CEO Steve Mollenkopf is in the statement Zhong said: 'We intend to terminate the acquisition of NXP's agreement at the end of today's agreement, and wait for any new important progress.'
Morenkov said: 'After the termination of the agreement, we plan to repurchase shares worth up to $30 billion to deliver high value to our shareholders.'
He also said after the announcement: 'We believe that the company continues to move forward, reducing uncertainty in the business, and focusing on the business itself, is what the company should do.'
In October 2016, Qualcomm announced that it will acquire NXP Semiconductors for approximately US$38 billion. If the acquisition is completed, it will become the largest M&A case in the history of chips. Previously, Qualcomm's acquisition of NXP has been obtained in the US, EU, Japan, and Korea. And Russia passed, but the Chinese Ministry of Commerce has not yet approved.
At the regular press conference of the Chinese Ministry of Foreign Affairs, Foreign Ministry spokesperson Yan Shuang said: 'In specific circumstances, I still have to advise you to ask the competent authorities. What I can tell you is that Qualcomm and NXP are world-renowned semiconductor companies, Qualcomm. The acquisition of NXP's transaction will have a profound impact on the global semiconductor industry. The relevant Chinese authorities are reviewing the acquisition in accordance with the provisions of the Anti-Monopoly Law. During the review process, the relevant Chinese authorities maintained good communication with Qualcomm.
Qualcomm's earnings report today showed that Qualcomm's third-quarter net profit was $1.2 billion, up 41% from $900 million in the same period last year; revenue was $5.6 billion, up 4% from $5.4 billion in the same period last year. Qualcomm The third-quarter results exceeded Wall Street analysts' expectations, and the fourth-quarter earnings outlook also exceeded expectations, driving its share price to rise more than 5%.