NXP surges on report China will review $44B Qualcomm takeover
NXP surges on report China will review $44B Qualcomm takeover. NXP Semiconductors shares surged Monday following reports that officials in China are reviewing Qualcomm's planned $44B take of the U.S. chipmaker. Bloomberg said China's Commerce Ministry is looking to speed up its assessment of the deal, as well as the remedies Qualcomm has offered to protect Chinese firms should the takeover get final approval.
China said last month that Qualcomm's proposals fell short of what the Ministry needed in order to "solve the problems related to market competition". Qualcomm withdrew and refiled its request for approval from China's regulators last month extended the end date of its purchase agreement until July 25, from April 25. Read more here.
Qualcomm is proposing to buy NXP for $127.50 a share, or $44 billion. The deal has received approval from eight of nine global regulators. Chinese regulators have said the deal could hurt competition within the chipmaker sector.
The new report is another indication that U.S.-China trade relations appear to be thawing. On Sunday, President Donald Trump said he would help Chinese cellphone maker ZTE "get back into business, fast." This comes after the U.S. imposed a ban on exports from U.S. companies to ZTE earlier this year.
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