China blocks attempts at international acquisition – DN.no

Qualcomm was ready to pay $ 44 billion for NXP Semiconductors, the world's largest manufacturer of advanced electronics for cars. It is an important growth area.

Last year, sales of data drives to automobiles rose 26 percent to $ 38 billion, according to Woodside Capital Partners. On average, the data bits rise to about 8,000 crowns in the production of a new electric car

– The Ports War

Such an important international acquisition needs to be approved by the authorities United States, Europe and Asia. It's been 20 months since the two companies reached an agreement. China has not responded – in every way and has not indicated when a decision can come.

– We assessed the risk in light of the geopolitical situation. We think that there is no high probability that this will happen in the short term, "said Steve Mollenkopf, CEO of Qualcomm

when Qualcomm closes the cards, the company has to pay two billion dollars to the Dutch NXP

– I think we ended up in the trade war, said Mollenkopf to CNBC

In 2017, Qualcomm received about two-thirds of Chinese sales, where it delivers processors In 2017, China's revenues were $ 14.6 billion.

– Our business in China is strong, but it has become very difficult to make significant mergers and acquisitions in China. the current situation, "he says

– Political Decision

It has been more than two years since NXP and Qualcomm negotiated an agreement

– nothing in this transaction that China had any objections to. lack of openness on the part of the in China, according to NXP CEO Rick Clemmer at the Financial Times.

Trade experts believe that China is deliberately placing obstacles to major US acquisitions. This is to put pressure on the United States in the upcoming trade negotiations

– This was a political decision, says analyst Paul Triolo of the Eurasia Group at the Nikkei Asian Review.

United Technologies, Walt Disney and Carlyle await the approval of the major acquisitions of the Chinese authorities. None of these acquisitions directly involves Chinese companies. Disney is about to buy parts of 21st century American competitor Fox.

It is feared that these may be arrested.

– We will not see many important business in the future, especially not in the technology sector. we see a better dialogue between the two sides, "said Angelo Zino of the CFRA analysis company, referring to the high-level negotiations between China and the United States, to the Japanese business journal (Terms)