Qualcomm says NXP deal is off

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The Qualcomm – NXP deal is dead and will remain dead, despite the best efforts of the US and Chinese government to revive it, Reuters is reporting.

This weekend, US president Donald Trump met with his Chinese counterpart Xi Jinping in Argentina. After the talks, the Chinese government said it is “open to approving the previously unapproved” Qualcomm – NXP deal, “should it again be presented”.

However, Qualcomm doesn't seem to be all that interested now.

“While we were grateful to learn of President Trump and President Xi’s comments about Qualcomm’s previously proposed acquisition of NXP, the deadline for that transaction has expired, which terminated the contemplated deal,” a Qualcomm representative told Reuters via email.

“Qualcomm considers the matter closed.”

Last July, after almost two years of trying to purchase NXP Semiconductors, Qualcomm said it was giving having failed to receive China's approval.

The Chinese government has held up the deal for some time, resulting in the chip giant deciding to back out of the agreement completely. Qualcomm has had pay a breakup fee of $2bn.

The two companies first entered into a deal back in 2016 when Qualcomm agreed to pay $47bn for NXP. Despite receiving approval from the EU and Korea, the chipmaker had to push back the deadline to close the deal as it waited for China to approve or deny the merger.

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