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At the end of May this year, the lawyer team of US Semiconductor Corporation, Qualcomm, arrived in Beijing, hoping to reach a transaction with Chinese antitrust regulatory agencies.They are optimistic that they will quickly clear up the last obstacle to acquiring the Dutch NXP (NXP) transactions for $ 44 billion.
Andrdquo, "All technical issues, and a person who understands Qualcomm's consultation in Beijing. AND" "In Qualcomm's view, everything that needs to be done has been done.Andrdquo;
But three days later, Donald Andbull; Donald Trump dropped a Andrdquo; before that, US Secretary of Finance Steven Mnuchin and China Deputy Prime MinisterLiu He claims that the two largest economies in the world will take a step back from the edge of the trade war. On this day, Trump announced that the US government will impose punitive tariffs on $ 50 billion in Chinese transmission and US products worth $ 50 billion.P>
And "Chinese regulators began to say some such as Andlsquo; Your President made Liu He embarrassed to Andrsquo; andLSQUO; he annoyed the Chinese people Andrsquo; Andrdquo;
At midnight on Wednesday, New York time, the company headquartered in San Diego could only be lowered to inevitable results.Since China has not been released at this time, Qualcomm announced that it will not continue to advance transactions with NXP.And "Obviously, we have been involved in what we can't reach, Andrdquo; the company's CEO Steve Molleenkopf (Steve Molleenkopf) said at the deadline for a few hours before the deadline for the transaction..
The Chinese government was unwilling to make a timely decision, which not only stifled the transaction that was vital to Qualcomm's transformation, but also could change the M & A pattern of American technology companies.
If a company involved in a M & A transaction involves a major business in a state, the antitrust regulatory agency of this country has the right to review the transaction, but China has not started to exercise this right until recent years.
On July 6, the United States began to impose tariffs on the first batch of US $ 34 billion Chinese imported products. Since then, the US President has repeatedly reiterated whether he intends to evaluate whether all Chinese products are imposed on the United States.US exports exceeded $ 500 billion.If a comprehensive trade war broke out, China will have to consider taking other forms of revenge, because there are not so many commodities imported from the United States in China, and they cannot respond to US tariffs in the same way.It is a way to destroy the large -scale strategic transactions of American companies from supervision, such as Qualcomm's acquisition of NXP transactions.
China refuses to approve this transaction and "any large mergers and acquisitions transactions to the semiconductor industry in the short term light up a large red light Andrdquo; CCS Insight analyst, Jeff andBull; Geoff Blaber.Obviously, the risks of the technology industry are very, especially considering that the semiconductor industry is a major strategic key industry in China, Andrdquo; he added.And "This, plus Andhellip; Andhellip; the entire trade war, really means that Qualcomm has become a victim of unfortunately in the overall environment. Anandrdquo;
In 2015 and 2016, M & A transactions announced by the semiconductor industry exceeded US $ 200 billion, including transactions between Qualcomm and NXP.The background that set off a boom in mergers and acquisitions in this field is that as the personal computer and smartphone industry slows down, small chip manufacturers seek to increase safety by increased scale, and large manufacturers strive to achieve diversified business. In addition, all companies try to 5G technology this year.Find your position before arriving.
But now, Mizuho semiconductor industry analyst Vijy andBull; Vijay Rakesh said that and "mergers and acquisitions have slowed down. Now we have basically stepped on the emergency brakes. Anandrdquo;
Qualcomm and NXP began negotiations since 2016, when NXP was looking for buyers for its digital network business.By June of that year, the CEO of the two companies discussed the overall acquisition of NXP.
It should be easy to complete this transaction, because the products of the two companies are not overlapping, which means that the regulatory agency is not very worried that it will affect competition.The acquisition transaction had been approved in eight judicial jurisdictions before Beijing's dilemma.However, the transaction that was brewing before Trump was elected president eventually became one of the most striking victims of the Trump government's aggressive trade policy.
Technically, the Chinese government has not stopped the transaction.After Qualcomm submitted the approval application in mid -April, the Chinese State Administration of Market Supervision and Administration (SAMR) issued the final ruling result for 6 months.
However, the Chinese regulatory agency's silent approach has covered many long shadows that need to be approved in the future.Investors holding Enzhima were hit by the termination of acquisitions. They now believe that China's existence in the global market is a great risk factor.
Andrdquo, "We were completely caught off guard, and an investment manager of a heavy position holding NXP said.
The investor added that China joined the global M & A supervision system and "just made the development of such business more difficult to Andrdquo;. This investor pointed out that the largest aerospace industry trading Andmdash in history; Andmdash; joint technologyThe company (United Technologies) acquired Rockwell Collins and Andmdash; and andmdash was approved by regulatory agencies before the deadline for September.
It is understood that people from the Sino -US trade negotiations revealed that officials in Beijing have hinted in May that they will approve Qualcomm's acquisition of NXP's transactions in exchange for Trump to terminate Trump's termination of China Telecom Company ZTE (ZTE) for violating the United States and Iran and Iran andSanctions that North Korea's technical embargo stipulated.In order to achieve his goal in Beijing, Qualcomm has privately lobby to revoke the sanctions on ZTE, ZTE is also an important customer of Qualcomm.
But when Trump resumed its hostile state of trade with China, a large American institutional investor began to operate his investment in NXP.
And "We still hold NXP’ s heads, but we have made precautions, and our position is much smaller than before. Andrdquo; Wednesday Qualcomm announced that a strategist at the above -mentioned agency said before the acquisition of NXP transactions./p>
Sherry Fei JU, Yuan Yang, and Liu Xinning (XINNINING) supplementary reports
Translator/He Li
