Qualcomm has increased its bid for NXP from USD 39 billion to USD 44 billion. This amounts to $127.50 per share, where $110 was offered earlier. In addition, the takeover can now proceed if Qualcomm can acquire 70% of the shares, as opposed to the previous 80%. All this is contained in an amended agreement, which has already been approved by the Boards of Directors of both companies.
In recent months, Qualcomm has not been inactive and the company has entered into discussions with shareholders. Now the company has already entered into binding agreements with nine shareholders of NXP, who together hold more than 28% of the shares.
According to Qualcomm, this new bid is partly due to the good performance of NXP in the past year. Once the companies have joined forces, they can become world leaders in the fields of automotive, security, Internet of Things and 5G, as the Board of Directors of Qualcomm hopes.
In January, the European Commission approved the takeover, albeit under certain conditions. The only party that has yet to give its consent is the Chinese Ministry of Commerce. The deadline for the new bid is 5 March.
Steve Mollenkopf, CEO of Qualcomm, hopes that the takeover will be completed as soon as possible: “With only one regulatory approval remaining, we are working hard to complete this transaction expeditiously. Our integration planning is on track and we expect to realize the full benefits of this transaction for our customers, employees, and stockholders.”
Two weeks ago, Qualcomm itself rejected a 121 billion bid from Broadcom, a chip-producer, originally from America.
Become a member!
On Innovation Origins you can read the latest news about the world of innovation every day. We want to keep it that way, but we can't do it alone! Are you enjoying our articles and would you like to support independent journalism? Become a member and read our stories guaranteed ad-free.