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US computer chip giant Qualcomm dropped to $ 43 billion merger with Dutch rival NXP on Thursday, as the deal became apparent to trade tensions between Washington and Beijing.
The deal was called after antitrust authorities in China failed
The decision ends the tie-up with the creation of a diversified chipmaker with Qualcomm's dominant position in smartphones and NXP's foothold in the market for powering chips "internet of things" connected devices. 19659004] Qualcomm said it would pay NXP a $ 2 trillion dollar breakup fee required under its agreement, and would begin a $ 30 billion repurchase plan.
US Treasury Secretary Steven Mnuchin
The deal "was approved in every single other territory," Mnuchin told CNBC television, adding that "we're just looking for the United States to be treated fairly. "
Analyst Patrick Moorhead of Moor Insights & Strategy said the merger plan was clearly a victim of the Trade dispute between the US and China.
"This was an American company trying to buy a Chinese company," Moorhead said.
"There were not any other protests that could be made.
The California firm ended its effort when the bid expired at 11:59 pm Eastern time (0359 GMT Thursday).
In Beijing, officials denied that tensions with Washington
"The issue with the anti-monopoly law enforcement of China-US trade frictions," trade ministry spokesman Gao Feng told reporters at a weekly press briefing Thursday. 19659013] The contract is collapsed with the US set to ramp up tariffs on Chinese imports following President Donald Trump's complaints of unfair trade
– Rubio rails at ZTE –
Recently the US has tough penalties on the Chinese tech firm ZTE that the firm's collapse, but the Trump administration later reached a deal that helped the firm remain in business.
US Senator Marco Rubio slammed the move by China and said Washington should retaliate.
Rubio tweeted that "@CommerceGov does #China favor & reverses ban on #ZTE buying chips from Qualcomm. And how did China return the favor? By blocking Qualcomm deal with NXP despite the begging & pleading from @USTreasury & Commerce Dept. We should reimpose ZTE ban. "
Qualcomm had a number of times, which would have prevailed over the prevailing smart chipmaker firm to a broader array of products including sensors and microprocessors for connected" internet of things "devices.
It also rises its bid – from $ 110 to $ 127 a share – in February, to the irritation of Broadcom 's chipmaker felony, which has recently launched a hostile bid for Qualcomm blocked by the White House
acquisition of Qualcomm by Broadcom – which would have been successful in the United States – would help Chinese competitors such as Huawei, especially in the emerging market for fifth generation (5G) A national security issue.
Based in the Dutch town of Eindhoven, NXP is a leading maker of chips for the auto industry,
A forming division of the Du tch electronics giant Philips, it became independent in 2006.
NXP's president and CEO Richard Clemmer said, "While it is unfortunate that the semiconductor powerhouse would have resulted from the transaction with the team, we are confident in our future as an independent market leader. "
burs-rl / jm
Steve Mollenkopf, CEO of Qualcomm, said the tie-up with rival Dutch chipmaker NXP result of failure to win approval in China
Qualcomm is the leading chipmaker for the smartphone market, and has faced antitrust investigations in several countries
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