Qualcomm is set to use NXP’s assets to diversify its business.
According to a South China Monitoring Post report, China’s regulators have approved U.S. chipmaker Qualcomm Inc’s $44 billion merger deal with NXP Semiconductors.
According to sources familiar with the matter at hand, the decision by China’s Ministry of Commerce clears a multi-months roadblock which were partially caused by trade tensions between the Washington and Beijing.
With China’s antitrust regulators giving the green light, the deal will now be sealed as it has got the blessings of all nine regulators across the globe.
Qualcomm did not immediately comment on the report.
NXP did not immediately respond to a request for comment.
According to Stacy Rasgon, an analyst at Bernstein, this approval was the last major hurdle that was needed to be crossed before the deal could be closed.
Initially, the deal faced headwinds from NXP shareholders following which Qualcomm raised its bid. Qualcomm will use NXP’s assets to diversify its business which is currently heavily concentrated in the mobile phone segment.
“In some of the end markets like automotive that Qualcomm have been trying to push into, they’ll get a distribution presence” by acquiring NXP’s sales force, said Rasgon.