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.
Subscribe to IO on Telegram!Subscribe!
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.
Innovation Origins is an independent news platform that has an unconventional revenue model. We are sponsored by companies that support our mission: to spread the story of innovation. Read more.
At Innovation Origins, you can always read our articles for free. We want to keep it that way. Have you enjoyed our articles so much that you want support our mission? Then use the button below: