US Chipmaker Qualcomm Extends $44 Billion Deal to NXP!
The giant U.S. chipmaker, Qualcomm Inc, announced last Friday that it extended their tender offer of a $44 billion deal to acquire NXP Semiconductors NV. This is the 29th time Qualcomm extended their offer while it awaits the clearance and approval from the Chinese government.
The Gracious Offer
Qualcomm, which currently supplies the main chips for making Apple iPhones, devices, and Android smartphones, is set to become the leading supplier in the rising automotive industry should the deal push through. The most extravagant deal ever made in the semiconductor industry remains pending as it faces different hurdles and challenges that hinder the company from sealing the deal.
For example, the NXP shareholders are opposed to the said deal since they complained that Qualcomm’s offer of only $110 per share undervalued their company. Among the shareholders who oppose the said proposal deal are Soroban Capital Partners LP, and Elliott Advisors (UK). Both shareholders of the company have withheld the proposal for more than a year since 2016. Qualcomm eventually raised its bid from $100 to $127.50 per share last February to regain its momentum from a hostile $121 billion deal from Broadcom Ltd.
The Rising Tensions
And even if the deal was already approved by right global regulators, it still needs to seek clearance from China’s Ministry of Commerce, amid the trade war tensions between Beijing and Washington. However, MOFCOM said the rising trade tensions because of Trump’s imposed metal tariff won’t affect their approval for business deals. In fact, they’ve approved two similar semiconductor deals with small American companies for the first half of 2018.
Last Friday, Qualcomm also extended its tender offer to purchase all NXP shares from June 29-July 6, 2018. Its spokesperson also said they would keep extending the offer until all conditions are met, waived, or if the offer is officially terminated. The company’s shares also rose by 1.1% with a value of $56.52, while the NXP shares fell last Friday.
The NXP’s Influence in the Semiconductor Industry
Some people are wondering as to why Qualcomm keeps on extending its deals to acquire NXP? Let us uncover NXP’s influence and global position in the semiconductors industry. NXP Semiconductors N.V. is a global manufacturer for semiconductors with more than 35 branches around the world.
Its main headquarters resides in Eindhoven, the Netherlands with more than 45,000 employees worldwide and 11,200 engineers in over 23 countries. NXP’s reported revenue in 2015 reached up to $6.1 billion, including the contributed revenue from Freescale Conductor. NXP was founded in 1953 and was formerly part of Philips Semiconductors.
The company was sold to private equity investors last 2006, which then changed its name to NXP. In 2010, NXP released its first IPO on NASDAQ trading under the NXPI name symbol. Last March 2, 2015, NXP Semiconductors announced its merging with Freescale Semiconductor for a $40 billion deal. However, the merging was terminated last December 2, 2015. NXP provides the best products based on automotive, analog signal, identification, networking, security, radio frequency and power management expertise.
The company is also a co-inventor for NFC, or near field communication technology together with Sony which enables mobile phones to browse the internet, pay for products online, as well as exchange data in a secure manner. Ever since then, they became the supplier for NFC chips in iPhone and Android smartphones. They’re also responsible for manufacturing chips for e-Government apps like electronic passports, RFID labels and tags, chipsets and contactless cards for MIFARE which is implemented by most public transit systems worldwide.
More in Business
A Closer Look at David and Victoria Beckham’s Surprisingly Massive Fortune
David and Victoria Beckham prove they are indeed #couplegoals not just because of their undeniably good looks and family but also...March 22, 2019
The Shocking Reason Why Former Spice Girl Mel B Went Broke
Mel B, also known as Melanie Brown, achieved success early on in her career being a former member of the iconic...March 21, 2019
Here’s What Lindsay Lohan Did to Successfully Resurrect Her Career
The year was 2004 and young actress-slash-singer Lindsay Lohan was on top of the world. With successful teen movies and a...March 20, 2019
A Breakdown of the Things Johnny Depp’s Multi-million Monthly Budget Goes to
The past few years haven’t been kind to former Hollywood leading man Johnny Depp. His divorce to actress Amber Heard and...March 19, 2019
Here’s How to Manage Your Money Like Comedian Kathy Griffin. Thank Us Later
Kathy Griffin’s career may have been marked by plenty of controversies, but it hasn’t stopped the self-identified “D-list” celebrity from achieving...March 18, 2019
TAYLOR SWIFT IS NOT EVEN 30 YET, BUT HER REAL ESTATE’S WORTH WILL BLOW YOUR MIND!
While most people are focussed in her music career and dating life, Taylor Swift’s has managed to build an impressive collection...March 18, 2019
You Won’t Believe How Much Jessica Simpson’s Fashion Brand Has Grown so Far
Once upon a time, Jessica Simpson was just a successful country singer turned reality television star who wasn’t sure if the...March 18, 2019
Move Over Mark Zuckerberg and Bill Gates, Jeff Bezos Just Clinched the Most ‘Generous’ Billionaire Title of 2018
While everyone else is thinking of ways on how to tax the rich more, some billionaires are actually actively giving away...March 17, 2019
Volvo Announces New All-Electric Car Set to Rival the Tesla Model 3
For the longest time, Tesla has been dominating the market for electric vehicles (EVs). It reached a new milestone with the...March 17, 2019