Qualcomm Cancels NXP Deal and Announces $30 Billion Stock Buy Back
Author By Sophia VidaPosted on Wall Street learned on Wednesday that Qualcomm will no longer be buying Netherlands-based NXP as the company doesn’t think Chinese regulators will rule in favor of it.
The company said that it will move forward instead with share buybacks.
Qualcomm CEO Steve Mollenkopf stated on Wednesday, “We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments.”
According to a source familiar with the situation, the likelihood of an agreement was very slim with China’s State Administration for Market Regulation.
It was in 2016 that Qualcomm first offered around $38 billion for NXP and then upped its bid to $4 billion this past February.
The company will have to pay a breakup fee of $2 billion for terminating the deal.
Disclaimer: We have no position in QUALCOMM, Inc. (NASDAQ: QCOM) and have not been compensated for this article.
