- EU regulators could approve Qualcomm’s (NASDAQ:QCOM) $47B acquisition of NXP Semiconductors (NASDAQ:NXPI) as early as next week, according to Financial Times sources.
- Antitrust regulators were probing the deal on concerns of higher prices, reduced innovation, and fewer choices. But Qualcomm assuaged those fears by agreeing not to buy NXP’s standard essential patents and promised that rival products will still work with NXP’s.
- Background: Qualcomm offered to buy NXP for $110 per share in October 2016 and the deal promptly got stuck in the regulatory process. The delay gave activist investor Elliott Management time to demand more money from Qualcomm for the purchase. And the delay, plus an ongoing legal battle with Apple (NASDAQ:AAPL), put Qualcomm in a weakened position that could turn Broadcom’s unsolicited offer into a hostile takeover.
- Qualcomm shares are up 0.05%.
- NXP shares are down 0.1%.
- Previously: Qualcomm unveils severance plan to protect employees from Broadcom (NASDAQ:AVGO) (Jan. 10)
- Now read: Piotroski Enhanced Value Stock Selections - January
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