Qualcomm sweetens deal for remaining NXP shares

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Qualcomm has increased its share offer to take over NXP, finally winning the agreement of the remaining recalcitrant shareholders.

The chipset maker will pay $127.50 per share after pressure from the nine NXP shareholders who were objecting to the deal, up from the original $110 per share when the takeover was first announced in 2016.

It said this agreement also lowered the minimum threshold for the deal to go ahead from 80 percent of NXP's outstanding shares to 70 percent.

It added the deal reflected NXP's recent financial performance, a buoyant sector and healthy outlook for the years ahead.

However, it will also play a critical role in fending off takeover interest from rival Broadcom. In a letter to Broadcom's CEO Hock Tan last week that rejected its $146 billion bid, it said the offer did not reflect the true value of NXP.

Steve Mollenkopf, Chief Executive Officer of Qualcomm, said: “Qualcomm’s leading [system on chip] capabilities and technology roadmap, coupled with NXP’s differentiated position in Automotive, Security and IoT, offers a compelling value proposition."

He added: "With only one regulatory approval remaining, we are working hard to complete this transaction expeditiously. Our integration planning is on track and we expect to realise the full benefits of this transaction for our customers, employees and stockholders.”

Qualcomm Chairman Paul Jacobs said the NXP takeover would enhance the value of the chipset maker's work on 5G technology and also provide certainty for the company's shareholders.

The next battleground for Qualcomm and Broadcom will be the former's annual general meeting next month, where the latter will try and get a majority elected to the board of directors.