Qualcomm drops a merger with dutch rival NXP over its failure to receive Chinese regulatory blessing
The unexpected statement came a day after The American State of the Art $ 43-billion merger, which has failed to receive approval from Chinese antitrust authorities ̵
The State Administration for Market Regulation (SAMR) said it "knows that Qualcomm and NXP have decided to abandon the transaction, and find that regrettable".
Qualcomm's latest plan does not resolve competition issues … we hope to continue communicating with Qualcomm to find A solution within the review period. "
Companies including Qualcomm, NXP are looking forward to doing business in China as well as creating a business environment that is international, lawful and convenient, "SAMR added.
The tie-up was aimed at creating a diversified chipmaker combining Qualcomm's dominant position in smartphones and NXP's foothold in the market for chips "Internet of Things" connected devices.
Chinese regulators said the deal would have created a virtual monopoly with "deep and far-reaching"
Qualcomm said it would pay NXP a $ 2-billion break-up fee and begin a $ 30-billion stock repurchase plan.
China has voiced long-term plans to boost innovation and growth into its own high-tech
US Treasury Secretary Steven Mnuchin expressed disappointment that the deal fell through but sidestepped
Officials in Beijing have denied any link between the merger's collapse and China-US trade frictions.
The US slapped 25 percent tariffs on $ 34 billion in Chinese goods and US $ 100 billion of Chinese imports and US President Donald Trump have said they are ready to impose tariffs on $ 500 billion of Chinese imports.
On Thursday, Chinese regulators greenlit a proposed merger between French lens maker Essilor and Luxottica, the Italian eyewear company that produces Ray-Ban and Oakley sunglasses.
The deal already existed in four other key Markets – the US, Europe, Canada, and Brazil.
But China's consent came with a list of conditions restricting the combined company's operations in China, including not selling eyewear below cost without justifiable reason.
Qualcomm called out its planned merger with rival NXP after failing to get Chinese regulatory approval