Qualcomm will meet with Chinese regulators to cancel the $ 44 bln NXP agreement – Business News



BEIJING: Qualcomm Inc expects to meet in Beijing this week with China's antitrust regulators in a final effort to obtain authorization for its proposed purchase of NXP Semiconductors NV for $ 44 billion, three sources told Reuters.

The acquisition has been caught in the sights of growing commercial tensions between the US. UU and China, with sources saying that an approval would depend on the progress of broader bilateral talks. The agreement was approved by eight of the nine global regulators required, and the Chinese authorization is the only one pending.

Qualcomm will meet with Chinese regulators before US Secretary of Commerce Wilbur Ross arrives in China on Saturday, sources with Qualcomm

say. A Qualcomm team and officials from the State Administration of Regulation Mercado (SAMR) met in Beijing on Friday and held "productive" talks, the sources said.

The San Diego-based company is now "cautiously" optimistic "the agreement will go ahead, one of the sources said, amid recent signs of a meltdown in US-China trade tensions that has seen both parties propose tens of billions of dollars in tariffs.

On Friday, the Trump administration said it had reached an agreement that would put ZTE Corp back on the market after the Chinese telecommunications company paid a fine of $ 1,300. million and make changes in the administration.

Resolve ZTE sales ban has been of the utmost importance or China's leadership The firm was banned in April from buying American technology components for seven years after breaking an agreement came for violating US sanctions against Iran and North Korea.

"It seems as if it is coming to an end," said the source.

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Qualcomm is preparing a new presentation for SAMR to provide guarantees and final guarantees, the sources said.

The Chinese market regulator did not immediately respond to a request for comments by fax outside the company hours.

While there are no explicit links between ZTE's problems, Sino-US trade tensions and the merger of Qualcomm-NXP, there are "perceived links" and the timing of current discussions "is not casual," said two of the sources .

"The degree to which the two parties are moving to resolve commercial tensions clearly has an impact," said one source.

Qualcomm in recent weeks has moved to restart the discussions that have stopped the sin At the end of last year

the company was forced to resubmit its antitrust petition in China to cancel the deal with NXP, after of conversations reaching a dead end.

Cristiano Amon, president of Qualcomm, was in China for the last time China's antitrust regulator approved Qualcomm's investment in a state-owned Datang Telecom Technology Co. unit earlier this month to design, package and test chip sets for smartphones. , one year after the joint venture was announced. – Reuters

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