Qualcomm Plans To Terminate NXP Semiconductors Bid

(RTTNews) - Qualcomm Inc. (QCOM) said that it plans to terminate its $44 billion bid to acquire rival chipmaker NXP Semiconductors NV, barring last-minute antitrust clearance from China, ending its 20-month attempt to complete the deal.

"We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments. In addition, as previously indicated, upon termination of the agreement, we intend to pursue a stock repurchase program of up to $30 billion to deliver significant value to our stockholders." said Steve Mollenkopf, CEO of Qualcomm.

In the absence of approval from the State Administration for Market Regulation in China or SAMR or other material developments, Qualcomm expects to terminate the transaction after 11:59 p.m. New York time on July 25, 2018, which is the "End Date" for the transaction under the definitive agreement. If SAMR has not approved by the End Date, NXP will be entitled to receive a termination fee of $2.0 billion, which will be paid using existing cash and cash equivalents. If events occur that cause Qualcomm to not terminate the transaction, Qualcomm will continue to pursue the acquisition of all of the issued and outstanding shares of NXP.