Reviews stall takeovers

Business | Reuters 16 Apr 2018

Two multi-billion dollar takeovers of semiconductor makers are being stalled by Chinese regulatory reviews amid rising US-China trade tensions, the Wall Street Journal reported.

Qualcomm Inc's proposed US$44 billion (HK$343.2 billion) purchase of Dutch chip maker NXP Semiconductors could be at risk due to the delayed review. China is the only country that has not yet signed off on the deal, or on Toshiba Corp's planned US$19 billion sale of its chip unit to a Bain Capital consortium, according to the newspaper.

Qualcomm's merger agreement with NXP was extended for a second time in January, giving the two until to April 25, although the parties could decide to extend the deadline.

China's Vice President Wang Qishan last month told Qualcomm chief executive Steve Mollenkopf that the review would not be affected by politics, the newspaper said.

The Trump administration this month unveiled about US$50 billion of tariffs on Chinese products, drawing a threat of retaliation from Beijing.

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