China Says It Isn't to Blame for Failure of NXP-Qualcomm Deal -- WSJ
30 Luglio 2018 - 9:02AM
Dow Jones News
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 30, 2018).
BEIJING -- Chinese antitrust regulators weighed in on Qualcomm
Inc.'s busted acquisition of Dutch chip maker NXP Semiconductors
with their own statement: Don't blame us.
China's State Administration for Market Regulation -- the last
of nine regulators around the world needed to green-light the deal
-- said Friday that Qualcomm's latest proposal failed to address
competition concerns. The regulator said it had extended its own
deal-review deadline to Oct. 14.
"Qualcomm and NXP decided to abandon the deal as the deadline
the two parties agreed on expired. [We] regret this," the regulator
said, adding that it had hoped to continue communicating with
Qualcomm and resolve the remaining issues within the review
period.
Qualcomm and NXP didn't immediately respond to requests for
comment.
Qualcomm ditched its $44 billion bid Wednesday, the latest
deadline it had set for completing the acquisition. It cited the
stalled process in China, having extended the deadline in April
while awaiting Chese approval. The acquisition had been announced
in October 2016.
The San Diego-based chip maker will pay a $2 billion termination
fee to NXP.
Chinese officials have publicly insisted that the delay had
nothing to do with escalating trade friction with the U.S., but
people with knowledge of the situation have told the Journal that
the friction is the main reason for it. China can't keep pace with
the U.S. on retaliatory tariffs -- it imports far less from the
U.S. than the U.S. imports from China -- but it has other weapons
including holding up U.S. M&A deals and business license
approvals, these people say.
For Beijing, seeking to develop its own semiconductor industry,
blocking the NXP acquisition pays an added dividend: It hinders the
growth of Qualcomm, which has a commanding position in cutting-edge
chip technology, longtime China economist Christopher Balding has
pointed out.
With NXP, Qualcomm would have gained a company that reported
$9.26 billion in revenue last year and employs some 30,000 people.
Qualcomm itself had $22.29 billion in sales in its latest fiscal
year, and a similar number of employees.
In its statement, China's antitrust authority said it treats
companies of home and abroad on an equal footing and will ensure
fair competition for all.
"[We] welcome companies from all countries, including Qualcomm
and NXP, to invest and do business in China."
Liyan Qi
(END) Dow Jones Newswires
July 30, 2018 02:47 ET (06:47 GMT)
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