Pass Qualcomm Meets With Chinese Officials This Week: Acquisition of NXP Trading Expected to Be Approved

According to sources, Qualcomm is expected to meet with Chinese anti-monopoly regulators in Beijing this week in order to ensure that its $44 billion acquisition of NXP's transactions is approved through the final move.

The transaction was implicated in the escalation of Sino-US trade frictions. Informed sources said whether the deal was approved depends on the broader bilateral talks between China and the United States. A total of 9 regulatory agencies are required to approve the transaction. At present, only China has not yet approved it.

Qualcomm may meet with Chinese regulators before U.S. Secretary of Commerce Wilbur Ross arrives in Beijing on Saturday. They said that Qualcomm’s team will meet with relevant department officials in Beijing on Friday.

The trade friction between China and the United States released a signal of easing in the near future, so Qualcomm is currently cautiously optimistic about the deal.

Qualcomm has not yet commented on this and NXP has not responded.

It is reported that Qualcomm is currently preparing a new plan submitted to the regulatory agency, the goal is to provide the final guarantee. However, the Chinese market regulator has not yet responded.

Although there is no clear link between the ZTE issue, Sino-U.S. trade friction, and Qualcomm’s approval for the acquisition of NXP, the “perceived link” between the existing negotiation opportunities is not a coincidence.

"The degree of resolution of trade friction between the two sides will obviously have an impact," said one person familiar with the situation.

Qualcomm has restarted the communication procedures that had been terminated at the end of last year in recent weeks. After entering a dead-end alley last year, the company re-submitted an anti-monopoly application in China in April.

Qualcomm president Cristiano Amon attended the big data industry conference in Guizhou, China last week. Earlier this month, Chinese anti-monopoly regulators also approved Qualcomm’s investment in a division of Datang Telecom to design, package, and test smart phone chips, which was announced one year after the joint venture announced.

 

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