Qualcomm Expects to Call Off $44 Billion Deal for NXP Semiconductors
The developments followed actions by President Trump to aid Qualcomm this year. In March, he blocked a $117 billion hostile takeover bid for Qualcomm by a rival chip maker, Broadcom, after a federal committee said an acquisition would reduce research spending on wireless technology essential to national security.
“We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments,” Qualcomm said in a statement, adding that it planned to pursue a stock buyback of up to $30 billion.
If the deal falls apart, it will be a setback for Qualcomm. The company, based in San Diego, is expected to immediately have to pay NXP a $2 billion breakup fee for failing to win regulatory approval for the transaction.
More broadly, Qualcomm must convince shareholders that it can expand its business without the Dutch-based chip maker, which was expected to speed Qualcomm’s expansion into chips for cars, mobile payments and other applications.