Qualcomm's $44 billion NXP deal fails

World
Europe

00:53

Qualcomm has failed to acquire NXP Semiconductors, as no sign of further discussion has been shown by the Chinese side before the deal's Thursday deadline, putting an end to what would have been the largest transaction ever in the semiconductor industry.

Qualcomm said earlier today that they would buy back 30 billion US dollars in stock as a way of appeasing its shareholders if the deal failed.

Qualcomm will pay NXP a breakup fee of two billion US dollars for scrapping the deal.

“The deal is about an antitrust issue and it is subject to the State Administration for Market Regulation (SAMR). It has nothing to do with the current China and US trade frictions,” said Geng Shuang, the spokesperson of China’s Ministry of Commerce in response to a reporter’s question during the regular press conference.

Qualcomm CEO Steve Mollenkopf said the company is ready to terminate the purchase agreement to acquire NXP when the deal expires on Thursday.

NXP Semiconductors. /VCG Photo

The American multinational semiconductor company has been trying to acquire NXP for nearly two years, at a cost of 44 billion US dollars.