On Monday, The shares of NXP Semiconductors have hiked by more than 10 percent. This hike is due to the report that China has resumed its review of U.S. chipmaker Qualcomm proposed $44 billion buyout of the Dutch semiconductor company.

Shares of Qualcomm was up 2.5 percent in premarket trading.

The U.S. chipmaker, which initially had announced its bid for NXP in October 2016, said in February it was raising its bid to $127.50 per share, valuing the company at $44 billion.
In exchange, binding agreements were received from nine NXP stockholders that collectively own more than 28 percent of NXP’s outstanding shares to support the deal.
The shareholders include hedge funds Elliott Advisors (UK) Ltd and Soroban Capital Partners LP, who had spearheaded opposition to the NXP deal.

That sweetener came weeks before President Donald Trump, citing national security and worries about China gaining the upper-hand in fifth-generation (5G) mobile network technology, ordered rival Broadcom Ltd to halt its proposed $117 billion buyout of Qualcomm.

The next NXP deal is the biggest in the semiconductor sector and is crucial to Qualcomm. Qualcomm is seeking to diversify its customer base and become the leading chip supplier to the fast-growing automotive market.

The U.S. chipmaker has already received approval from eight of nine required global regulators to finalize the acquisition. Chinese clearance is the only one pending with regulators continually stalling the takeover amid U.S.-China trade tensions.

Qualcomm refilled its application for the deal, in April, giving regulators more time to decide. The Chinese commerce ministry later that month said Qualcomm needs to do more to complete the takeover because the U.S. company’s initial set of remedies to resolve competition issues were insufficient.

The reports of the sources did not say who has asked the ministry to speed up the review, or what Qualcomm has proposed. Approval of the deal is not definite and still could be delayed, the report said, citing the sources.

Through a mail, NXP  said that “With regard to matters related to the proposed acquisition of NXP by Qualcomm, we encourage you to get in touch with Qualcomm.”

Mia Noles
Mia Noles is a writer at the Ode Magazine. She holds a Bachelor of Arts English Literature Degree from Leeds University. Her specialty is Celebrity News, History, and World News. She is also a life enthusiast who loves traveling the world and taking part in humanitarian courses. You can contact her at mia@odemagazine.com.

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