Qualcomm’s record takeover of NXP could be wrapped up by Christmas. The US chipmaker is expected to win European Union approval for the bid before the year is up, which should be the last major hurdle to overcome. The deal worth a reported $38 billion will be the largest-ever in the semiconductor industry and will make Qualcomm the leading supplier in the growing automotive chip market.
Regulators have dropped their concerns after accepting Qualcomm’s pledge not to acquire standard essential and system-level patents belonging to NXP, according to a Bloomberg report. Question marks over the deal were raised earlier this month when Qualcomm was subject to a takeover bid of its own. Rival chipmaker Broadcom tabled a staggering $103 million bid, but Qualcomm directors voted unanimously against the proposed takeover.
It is more good news for Qualcomm on the back of the company reaching agreements with three Chinese smartphone vendors. Qualcomm announced that it had signed non-binding deal worth around $12 billion, as part of broader agreements signed during US President Donald Trump’s first state visit to China, underscoring the strength of commercial partnerships between the world’s two largest economies.
Under the ‘memorandums of understanding’, Xiaomi, Oppo Electronics and Vivo Mobile Communication Technology said they plan to buy smartphone components, mostly chips, from Qualcomm over the next three years.