Qualcomm extends NXP tender provide but once more

(Reuters) – U.S. chipmaker Qualcomm Inc (QCOM.O) on Friday prolonged the tender provide for its proposed $44 billion deal to purchase NXP Semiconductors NV (NXPI.O) for the 29th time because it awaits clearance from the Chinese language authorities.

FILE PHOTO: An indication on the Qualcomm campus is seen in San Diego, California, U.S. November 6, 2017. REUTERS/Mike Blake/File Picture

Qualcomm, which provides chips to Android smartphone makers and Apple (AAPL.O), will develop into the main provider to the fast-growing automotive chip market if the deal goes via.

The most important-ever deal within the semiconductor business has confronted hurdles from the onset, beginning with the opposition from NXP shareholders who complained that Qualcomm’s $110 per share provide undervalued the corporate.

The shareholders, which included hedge funds Elliott Advisors (UK) Ltd and Soroban Capital Companions LP, held out for greater than a yr because the provide was made in 2016.

Qualcomm relented in February and raised its bid to $127.50 per share as a transfer to defend itself from a hostile $121 billion takeover bid from Broadcom Ltd (AVGO.O).

Though the deal has been cleared by eight of the 9 required international regulators, it now faces a brand new hurdle within the type of China’s Ministry of Commerce (MOFCOM) amid rising commerce tensions between Washington and Beijing.

MOFCOM, nonetheless, has permitted two smaller semiconductor offers involving American corporations this yr.

Qualcomm, which prolonged its tender provide each month final yr, has now been doing it each week.

On Friday it prolonged its money tender provide to purchase all of NXP shares to July 6 from June 29.

The tender provide will proceed to be prolonged till all circumstances are happy or waived, or till the tender provide is terminated, Qualcomm mentioned.

Shares of the corporate rose 1.1 % to $56.52, whereas these of NXP fell marginally on Friday.

Reporting by Sonam Rai in Bengaluru; Enhancing by Anil D’Silva

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