According to reports, Qualcomm re-approved its application to the Chinese Ministry of Commerce on Monday, hoping to approve its $44 billion acquisition of NXP Semiconductors transactions.
This will give the Ministry of Commerce more time for approval to avoid the transaction being rejected. The fact is that, with the escalation of trade war between China and the US, China is slowing its review of Qualcomm’s acquisition of NXP Semiconductors.
Some analysts said that before the trade war and investment frictions are resolved, the Chinese Ministry of Commerce is unlikely to approve the transaction.
NXP Semiconductors is one of the world's largest semiconductor manufacturers, and Qualcomm is seeking to expand its customer base and become a leading chipmaker in the rapidly growing self-driving automotive market. Therefore, the acquisition of NXP Semiconductors is critical to Qualcomm. If the transaction needs to be completed successfully, it needs to be approved by the regulatory authorities in nine countries around the world. Qualcomm has so far received the approval of eight of these departments and is only to be approved by the Ministry of Commerce of the People's Republic of China.
China now is the only one that has not yet given approval. By re-applying, Qualcomm will probably provide the Ministry of Commerce with another 6 months to evaluate its application. Again, analysts believe that the Chinese Ministry of Commerce is unlikely to approve this transaction until the trade war and investment tensions are resolved.
