China says still open to talks on scrapped Qualcomm-NXP takeover

SHANGHAI (Reuters) – China's market regulator said it was still interested in a solution to its concern that doomed Qualcomm Inc. ( QCOM.O ) $ 44 billion (£ 33.57 billion) takeover of NXP Semiconductors ( NXPI.O ), after finding that the answers to the question of the issue had fallen short.

US-based Qualcomm Abandoned on Thursday what would China's approval has won the world's biggest prize winner.

China's State Administration for Market Regulation (SAMR) said in a statement that it was unable to continue to compete with Qualcomm.

The Chinese move likely to come too late for a resurrection of the deal, which had become embroiled in a political spat between Washington and Beijing. With NPCP has already paid NXP a $ 2 billion break fee.

"Andrew Gilholm, Director of Analysis for China and North Asia at Consultancy Control," said Andrew Gilholm, Director of Analysis for China and North Asia at Consultancy Control Risks.

"Of course, this conflict with the view of many people following the US-China situation had become the obstacle, not the competition implications."

The collapse of the deal could aggravate tensions between Washington and Beijing a whipsawing trade standoff that has chilled relations between the world's top two economies.

Qualcomm, the world's biggest smartphone-chip maker, said it was on the way to NXP, unless last minute reprieve from China was received. There was no word from SAMR, the antitrust regulator reviewing the deal, as the deadline for the deal to expire passed.

The Chinese regulator said on Friday that it was open to continuing negotiations over approving the deal. It would be expire on Aug. The results of our evaluation showed that this was the case for the second time, "the regulator said, adding that it had notified the chipmaker of this decision.

"We hope to continue to communicate with Qualcomm that we can find a suitable solution to resolve the issue."

When asked for a comment on SAMR's statement, a Qualcomm spokeswoman pointed to the announcement the deal's termination. NXP could not be reached for comment.

CAUGHT UP IN TRADE WAR?

China's trade ministry said on Thursday the country's case was about anti-monopoly issues, and not related to China-U.S. trade frictions.

Qualcomm, however, viewed it differently.

Qualcomm Chief Executive Steven Mollenkopf told CNBC in an interview on Thursday the United States Treasury Secretary Steven Mnuchin said it was disappointing and called for U.S. firms to be treated fairly.

The Chinese market regulator China was open to foreign firms and doing business in the country.

Gilholm of Control Risks said the big question for U.S. firms and politicians would be questioning American firms.

"The United States will not question it," he said. "What we do not know yet is if it's a one-off or not. I guess that's the next question. "