NXP shares fall as China's warning revives concerns over Qualcomm deal
(Reuters) - Shares of NXP Semiconductors NV (NXPI.O) fell 5 percent on Wednesday after China’s latest warning against U.S. trade threats dulled hopes of an early approval by Beijing for Qualcomm’s (QCOM.O) $44 billion acquisition of the chipmaker.
FILE PHOTO: A booth of U.S. chipmaker Qualcomm is pictured at an expo in Beijing, China, September 27, 2017. Picture taken September 27, 2017. REUTERS/Stringer/File Photo
The company’s shares gained about 9 percent since May 18 on media reports that the chances of the deal winning approval were looking “optimistic” as a U.S.-China trade spat cooled.
Also helping was a deal the U.S. government reached to put Chinese telecommunications company ZTE Corp (000063.SZ), (0763.HK) back in business.
FILE PHOTO: A man works on a tent for NXP Semiconductors in preparation for the 2015 International Consumer Electronics Show (CES) at Las Vegas Convention Center in Las Vegas, Nevada, U.S. January 4, 2015. REUTERS/Steve Marcus/File Photo
Qualcomm lawyers were expected to meet this week in Beijing with China’s antitrust regulators in a final push to secure clearance, three sources told Reuters on Sunday.
The meeting was expected before U.S. Commerce Secretary Wilbur Ross arrived in China on Saturday, the sources briefed on Qualcomm’s discussions had said.
However, the team of lawyers remained at the company’s San Diego headquarters, as of late Tuesday, a source familiar with the matter said.
“On hold now,” another person familiar with Qualcomm’s talks with the Chinese government said on Wednesday, declining to be identified as the negotiations are confidential.
The deal, announced in October 2016, has been approved by eight of the nine required global regulators, with China the only one pending.
Shares of NXP were down 1.2 percent while Qualcomm stock was marginally up premarket.