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Steve Mollenkopf, chief executive officer of Qualcomm Inc., holds the new Snapdragon 835 chip during a keynote at the 2017 Consumer Electronics Show (CES) in Las Vegas, Nevada.
Qualcomm CEO Steve Mollenkopf said his company will terminate its acquisition of NXP by the end of the day and plans to buy back up to $30 billion of stock.
While there’s still a chance China’s State Administration for Market Regulation, or SAMR, could make a last minute announcement before 11:59 pm ET, Qualcomm now sees the likelihood of an agreement as very slim, according to a person familiar with the matter, who asked not to be named because the company’s discussions are private.
SAMR doesn’t need to formally make an announcement accepting or rejecting the deal. If it doesn’t make a ruling, the self-imposed deadline between Qualcomm and NXP will expire. Qualcomm will have to pay NXP a $2 billion breakup fee.
Qualcomm first offered to buy NXP, which is based in the Netherlands, for about $38 billion in October 2016, but faced resistance from some NXP shareholders, who were holding out for a better price. Qualcomm upped its bid to $44 billion in February, but the deal has been held up by Chinese regulators amidst a growing trade conflict between the U.S. and China centered around the Trump administration’s imposition of tariffs on some Chinese manufactured goods.
The buyout could have helped Qualcomm, which provides chips to Android smartphone makers and Apple, expand into new market areas like automotive chips.