Qualcomm, Toshiba acquisition deals at risk as China slows reviews
Qualcomm has already withdrawn its antitrust application for China’s commerce ministry (MOFCOM) ahead of an April 17 deadline, according to a Reuters report. Qualcomm intends to refile restarting the clock and giving it a further six months and averting a collapse of the deal.
Howeve, it is thought that no decision is likely to come forward from MOFCOM until trade disputes between the China and the US are resolved.
It is a measure of the growing commercial significance of China that multinational companies could not proceed without getting approval of China.
Qualcomm originally made its bid for NXP in October 2016. In February it raised its bid to $127.50 per share, valuing NXP at about $44 billion.
The same Chinese regulators are seeking more protection for Chinese companies before approving the proposed purchase of Toshiba’s NAND flash memory business by a consortium led by Bain Capital.
As with the Qualcomm deal China is the last of multiple countries from whom approval had been sought that is holding back approval. In the case of Bain-Toshiba, the deadline for approval has been put back to May 1, according to a Korea Times report.
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News articles:
Activist investor questions Toshiba memory deal
Qualcomm raises bid for NXP to $44 billion
Qualcomm’s purchase of NXP could slip into 2018
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