Qualcomm admits defeat in NXP saga

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Qualcomm has dropped its bid to take over chipset maker NXP after failing to secure approval from the Chinese regulatory authorities.

It brings to a close an acquisition saga that lasted almost two years when it launched a $110 per share cash offer.

Qualcomm announced this morning it would pay NXP a $2 billion termination fee and a $30 billion stock repurchase plan.

Steve Mollenkopf, CEO at Qualcomm, said: “Our core strategy of driving Qualcomm technologies into higher growth industries remains unchanged. 

"We will continue to focus on our strong momentum in these growth industries with projected revenues of approximately $5 billion for fiscal year 2018, up greater than 70 percent from fiscal year 2016.

"We believe our technology leadership and disciplined execution will drive significant value creation for our stockholders.”

He shrugged off concerns about the company's future without NXP, pointing to $1 billion in IoT revenues during the 2017/18 financial year, as well as its network and automotive business.

However, the company has been hit with the news that Apple is reportedly swapping out its chipsets in favour of Intel's in future iPhones.

It has been an eventful couple of years on the M&A trail for Qualcomm. As part of its attempts to take over its rival, it had to woo nine recaltriant NXP shareholders who were objecting to the value of the deal.

At the same time as trying to force through the NXP acquisition, it was also fighting off approaches from Broadcom. Qualcomm argued each bid considerably undervalued the company but it was the intervention of US President Donald Trump that finally killed any chance of a deal.