Qualcomm Inc Could Get Beijing’s Approval on NXP Semi Bid This Week

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Qualcomm - Qualcomm Inc Could Get Beijing’s Approval on NXP Semi Bid This Week

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Qualcomm Inc (NASDAQ:QCOM) is expected to meet regulators in China this week to push for a green light on its proposed $44 billion acquisition of NXP Semiconductors NV (NASDAQ:NXPI), according to media reports over the weekend. NXPI stock climbed more than 4.7% on Friday, compared to the Nasdaq Composite index’s 1.3% gain.

Qualcomm could meet Chinese antitrust regulators before U.S. Commerce Secretary Wilbur Ross arrives in Beijing on June 2, Reuters reported on Sunday. Qualcomm representative and officials from the Chinese State Administration for Market Regulation met in Beijing on May 25 and had “productive” talks, according to the report.

Deal negotiations are happening just as U.S.-China trade tensions are escalating. Chinese approval of the transaction is the last of nine global regulators pending.

Earlier this year, Broadcom Inc (NASDAQ:AVGO) tried to acquire Qualcomm in what would have been one of the largest mergers in history. That deal was blocked by the Trump administration, however. With that deal nixed, QCOM stock has added more than 17% in the last month, while the Nasdaq gauge increased 4.4% in the same period.

InvestorPlace market strategist Anthony Mirhaydari in mid May pegged QCOM stock as one of three to buy before they break out. “QCOM retook its 50-day moving average for the first time since late February thanks to word Chinese and U.S. regulators could speed the review of the company’s planned purchase” of NXP. Adding: “There’s an element of quid-pro-quo here, as Trump looks for a deal with China’s President Xi to ease trade hostilities between the two countries.”


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/qualcomm-inc-could-get-beijings-approval-on-nxp-semi-bid-this-week/.

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