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China has decided to buy NXP through Qualcomm



The Chinese authorities will approve the acquisition of Dutch NXP Semiconductors NV by Qualcomm Inc. in the coming days, according to the person familiar with the matter. This would be another important step in easing the frayed US China trade relations

China's state market regulator, which has conducted the antitrust review, will hold a meeting on Monday on this issue. They said a quota of Qualcomm's legal department had arrived in Beijing this weekend to work out final details.

The approval would remove the last hurdle to a deal that has been stuck in trading tensions between the US and China for months, with some conditions. The Chinese regulators have expressed concerns that the merged entity would displace domestic companies in areas such as mobile payments. NXP Offers Mobile Payments Technology and Services

The probable approval comes as Trump's government battles Congress to punish Chinese telecom giant ZTE Corp. Repaying and Preparing for Interinstitutional Delegation as US Secretary of Commerce Wilbur Ross begins Beijing on June 2, where he will meet Chinese business partner Liu He.

The acquisition of NXP is considered critical for the San Diego-based Qualcomm-based company, which dominates smart-phone chips but seeks growth in other areas. NXP's products include chips for cars, a fast-growing sector as more technology is packed into cars.

Qualcomm had waited for Beijing's approval to proceed with the purchase of the Dutch company after obtaining the approval of the eight other antitrust authorities

A spokesman for the Chinese Ministry of Commerce said last month that the agency will conduct a pre-trial of the effects of Qualcomm And that it has found "difficult to solve problems that make it difficult to eliminate the negative effects."

The State Market Inspectorate could not be reached immediately for an opinion.

On Saturday, Qualcomm's President Cristiano Amon spoke at the Big Data Expo in Guiyang, southern China. While not mentioning the company's plan to acquire NXP, he emphasized Qualcomm's commitment to China. "China is very important to Qualcomm," he said. "We are rooted in China, we have developed a number of very strong partnerships, nothing can separate us from China."

China had defended examinations of multi-billion takeovers as leverage, as Beijing tried to fend off Trump's trading offensives of the administration. But since the beginning of the month, when President Donald Trump said in a tweet that he would step in to bring ZTE back into business, Beijing has shown its willingness to ease the regulatory blockades of US companies.

Last week, China approved the US Bain Capital's $ 1

8 billion purchase of Toshiba Corp.'s memory chip unit, a move that is considered a gesture of goodwill when President Xi Jinping's business executive, Mr. Liu, Washington visited for trade talks. Earlier this week, Chinese Vice President Wang Qishan told a group of foreign companies, including a Qualcomm manager, that the Qualcomm and NXP transactions would have a good chance of being approved by Chinese regulators. 19659002] The US and its allies urge Beijing to give the green light to the deal. US negotiators recently discussed the issue with Washington, people who were briefed on the talks said. German Chancellor Angela Merkel from Germany also made a strong case for the deal this week at her meeting with Mr. Xi, according to a person who knows about this matter.

In the case of ZTE, the Trump administration is now working to loosen US sanctions had threatened to expel China's second-largest manufacturer of telecommunications equipment and the fourth-largest mobile phone supplier in the US

The US Department of Commerce issued last month US companies banned to supply the Chinese company because it is the terms of an agreement on ZTE's circumvention of sanctions on sales to Iran and North Korea. Qualcomm was one of ZTE's main suppliers

But Trump's administrative officials have tried to negotiate a moratorium, saying they never wanted to squeeze ZTE out of business, noting that the action also harms US companies supplying ZTE. [196592002] That triggered a backlash from Democrat MPs who say ZTE's injuries are serious and should be punished.

The developments are coming as both sides appear to be preparing for the trade war and declare a ceasefire amid ongoing negotiations. China has agreed to buy more agricultural products, energy and services from the US, and said last week it would lower tariffs on imported cars from 25% to 15% from 1 July.

Yang Jie

contributed this article

Write to Yoko Kubota at [email protected] and Lingling Wei at [email protected]


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