Qualcomm had said earlier in the day that it would drop its $44 billion bid for NXP — the world’s biggest semiconductor takeover — unless it received a last minute reprieve. If the deal is terminated, Qualcomm will pay a $2 billion deal breakup fee to NXP no later than 09:00 ET on July 26.
There was no word from China’s State Administration for Market Regulation or Qualcomm after the time for the deal to expire passed. Qualcomm did not immediately respond to a request for comment.
Investors expressed relief at Qualcomm’s comments earlier in the day and the company’s shares rose nearly 7 per cent in after market trading. The San Diego chipmaker delivered surprisingly strong third-quarter results and a rosy outlook for so-called 5G technology, the next generation of wireless data networks.
The company also said earlier on Wednesday that it will buy back $30 billion in shares if the deal ultimately failed, making good on a promise to reassure investors about its prospects.
Qualcomm still faces challenges, including expectations that its chips will not be in the next round of Apple’s iPhones and the need to find new markets beyond mobile phones without NXP’s help.
But it cited progress on one of two major patent royalty conflicts, thought to be with Chinese phone-maker Huawei Technologies Co Ltd, in the form of a $700 million interim agreement.—Reuters
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