Deals
Qualcomm to Scrap NXP Bid; China Fails to OK as Time Expires
- Chipmaker to buy back $30 billion in stock if purchase dies
- ‘Bigger forces at play here than just us," CEO Mollenkopf says
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Qualcomm Inc. said it will abandon its $44 billion bid to acquire rival chipmaker NXP Semiconductors NV, barring last-minute antitrust clearance from China, ending its 20-month attempt to complete the largest-ever deal in the semiconductor industry.
Under the terms of their agreement, Qualcomm has until 11:59 p.m. in New York to get sign-off from Chinese regulators, who have delayed approval for months against the backdrop of rising trade tensions with the U.S. The company intends to pay NXP a $2 billion breakup fee and plans to buy back as much as $30 billion in stock if the purchase is scrapped, according to a statement Wednesday.