Qualcomm's 29th Extension Of $44 Billion Acquisition Of NXP Semiconductors Offer

- Jul 04, 2018-

According to Reuters, US chipmaker Qualcomm Incorporated (NASDAQ: QCOM) announced on Friday that it will extend its offer to acquire NXP Semiconductors (NASDAQ: NXPI) for $44 billion, which is the 29th extension of the company. The reason for the offer is that it is awaiting regulatory approval by the Chinese government.

Qualcomm provides chips for Android phone makers and Apple Inc. (NASDAQ: AAPL), and if the M&A deal is finally completed, Qualcomm will become a leading supplier to the rapidly growing automotive chip market. The proposed acquisition is the largest transaction in the history of the semiconductor industry. The deal faced many obstacles from the beginning. The earliest objection came from NXP Semiconductors shareholders who complained about Qualcomm's $110 per share offer. Underestimating the value of the company.

Since Qualcomm launched an offer for NXP Semiconductors in 2016, NXP Semiconductors shareholders have been reluctant to compromise for more than a year, including hedge funds Elliott Advisors (UK) Ltd. and Soroban Capital Partners LP.

Subsequently, in February of this year, Qualcomm raised its offer for the offer to $127.50 per share in an effort to counter the $121 billion hostile takeover bid by Broadcom (NASDAQ: AVGO) for NXP Semiconductors.

Last year, Qualcomm extended its takeover offer once a month, but now it is extended once a week. On Friday, Qualcomm extended its deadline for the cash offer for all NXP Semiconductors shares from June 29 to July 6.

Qualcomm said the company will continue to extend the offer period until all conditions are met or waived, or when the offer is terminated.

In the US stock market trading on Friday, Qualcomm shares rose 0.39%, NXP Semiconductors shares fell slightly.