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Home / Business / Qualcomm to hit China regulators to clear $ 44 bln NXP deal – Business News

Qualcomm to hit China regulators to clear $ 44 bln NXP deal – Business News



BEIJING: Qualcomm Inc expects to meet with Chinese antitrust authorities this week in Beijing to secure clearance for its planned $ 44 billion acquisition of NXP Semiconductors NV, three sources told Reuters.

The takeover was intercepted In the crosshairs of rising tensions between the US and China, the sources that agreed would depend on the progress of wider bilateral talks. The deal was nodded by eight of the nine required global regulators, with China's clearance being the only one outstanding.

Qualcomm likely to meet Chinese regulators before US Secretary of Commerce Wilbur Ross arrives in China on Saturday, Qualcomm said (1

9659002) A Qualcomm team and officials from the State Market Administration (SAMR) met in Beijing on Friday and had "productive" talks, it was said.

The San Diego-based company is now "cautiously optimistic" the deal will go ahead, one source said, among the recent signs of a thaw in US-China trading tensions that both sides are hitting tens of billions of dollars in Tariffs proposed.

On Friday, the Trump administration said it had reached an agreement that would reinstate ZTE Corp after the Chinese telecommunications company paid a fine of $ 1.3 billion and made administrative changes The solution to the ZTE ban on sales was of paramount importance to China's leadership, and the company was banned from buying American technology components for seven years in April after breaking an agreement they had made for violating US sanctions against China Iran and North Korea.

"It feels like it's almost over," he said Source

NEW SUBMISSION

Qualcomm is now preparing a new submission to SAMR to provide final guarantees and assurances, the source said.

China's market regulator did not immediately respond to a faxed request for comment outside of the business

While there are no explicit links between the ZTE issues, Sino-US trade tensions and the Qualcomm-NXP merger release, there are "perceived Connections "and the timing of the current discussions is" not accidental, "said two of the sources

" The degree to which the two sides move to resolve trade tensions has a clear impact, "a source said.

Qualcomm has begun resuming discussions that have stopped the sin in recent weeks The company had to reject its Chinese cartel application in April to clear the NXP deal after the talks reached a dead end.

Qualcomm president Cristiano Amon was last in China In the southwestern province of Guizhou, the Chinese antitrust authorities visited Qualcomm's investment with a state-owned Datang Telecom Technology Co. unit to develop, package and deliver smart phone chipsets one year after the joint venture became public. – Reuters


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