Biggest-ever Dutch tech deal strands over Chinese objections
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US chip maker Qualcomm on Thursday called off its $44bn attempt to acquire its smaller Dutch peer NXP. Qualcomm said the failure of Chinese regulatory authorities to approve the transaction had forced it to scuttle the deal, according to various media.
Industry sources say the Quallcom-NXP deal was an early victim of escalating global trade uncertainties.
Qualcomm made its initial bid for NXP in October 2016. The transaction would have been the second largest ever in the Dutch financial market, trailing only the abortive takeover of ABN Amro. Under terms of the bid, Qualcomm will pay $2bn to NXP for cancelling the contract.
NXP has a worldwide payroll of 33,000, of whom 2,500 are located in the Netherlands in units at Eindhoven and Nijmegen. Both NXP and Qualcomm have developed important innovative technologies used in mobile phones.
NXP was part of Dutch electronics giant Philips until 2006. The European Commission approved the transaction beteen Qualcom and NXP in January.
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