Why NXP Semiconductors Stock Is Soaring Today

Advertisement

NXP Semiconductors NV (NASDAQ:NXPI) stock was flying high Monday on news of possible relaxing trade restrictions between the U.S and China.

Why NXP Semiconductors Stock Is Soaring Today

The increase to NXPI stock comes after President Donald Trump made a statement about getting smartphone maker ZTE up and running again. There is a ban on trades with the company due to violations.

Trade talks between the two countries are expected to proceed and may result in a better relationship. This includes opening the way for NXP Semiconductors to be acquired by Qualcomm, Inc. (NASDAQ:QCOM).

Qualcomm, Inc. and NXP Semiconductors NV first entered into an agreement back in 2016 for QCOM to acquire all outstanding shares of NXPI stock. However, Chinese regulators stepped in to stop the deal. Now China is looking into the matter again.

The deal between the two companies has Qualcomm, Inc. offering to buy NXP Semiconductors NV for $4.40 billion. While the deal hasn’t been able to be completed on time, the two companies haven’t given up just yet.

Qualcomm, Inc. announced last Friday that it was extending its tender offer for all outstanding shares of NXPI stock to May 25, 2018. This isn’t the first extension the company has made to the offer and won’t likely be the last. Either way, this and the recent China trade news still gives investors hope that QCOM will be able to complete its acquisition of NXP Semiconductors NV.

NXPI stock was up 13% and QCOM stock was up 2% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/nxp-semiconductors-stock-up-today/.

©2024 InvestorPlace Media, LLC