ANNOUNCEMENT 26 Jul 2018

July 26th, 2018 - Chinese authorities withheld approval of a multi-billion dollar merger between two chip manufacturers.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

Reuters, July 26th, 2018. 'Qualcomm ends $44 billion NXP bid after failing to win China approval'
https://www.reuters.com/article/us-nxp-semicondtrs-m-a-qualcomm/qualcomm-ends-44-billion-nxp-bid-after-failing-to-win-china-approval-idUSKBN1KF193

Bloomberg, July 26th, 2018. 'Qualcomm Scraps NXP Deal Amid U.S.-China Trade Tensions'
https://www.bloomberg.com/news/articles/2018-07-26/qualcomm-to-scrap-nxp-deal-as-deadline-passes-for-china-approval

Inception date: 26 Jul 2018 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On July 26th, 2018, the deadline for approval for an acquisition deal between the largest smartphone chip manufacturer in the world, US-based Qualcomm, and one of their rivals, Netherlands-based NXP, was exceeded, causing the deal to fall through. According to consistent press reports, this was due to the fact that the Chinese government had not yet given official approval for the deal under its competition law regulations. A Chinese official denied there was any link to trade frictions between the PRC and the US. Interestingly, previously a provisional go-ahead for the deal had been given.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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