Approval given by Europe for Qualcomm-NXP deal

Qualcomm Inc. has announced that the European Commission and the Korea Fair Trade Commission have given the go ahead for its acquisition of NXP Semiconductors NV, dependent on certain conditions.

The Deal Conditions

To achieve the latest approvals, Qualcomm has made agreements around near-field communication (NFC) patents that are essential to contactless payment. They have also agreed to exclude certain near-field communication (NFC) patents from the proposed transaction and to ensure that NXP licenses those patents to third patents. It has also said it will not assert NFC patents it will acquire from NXP and that it will maintain interoperability between Qualcomm’s baseband chipsets and NXP’s NFC chips and baseband chipsets and NFC chips from rivals. It will continue to offer to license out the MIFARE technology on terms equivalent to those offered by NXP today.

The European Commission said that its approval is conditional on full compliance with commitments offered by Qualcomm. The acquisition has now been approved in 8 out of 9 authorities from around the world with only China remaining.

Commissioner Margrethe Vestager, in charge of competition policy, said: “We use our smartphones for many different things and now also more and more as mobile wallets, to pay for public transport or make other secure payments. With this decision, we ensure that Qualcomm’s takeover of NXP will not prevent consumers from continuing to enjoy the benefits of these innovative technologies at competitive prices .

Looking to the future for Qualcomm

Over the coming weeks, Qualcomm is facing a series of proceedings including earnings, a shareholder meeting, and possibly a decision on Chinese regulatory approval. This could force it into negotiations with NXP stockholders, a move that’s been slow from thee start.

Qualcomm CEO Steve Mollenkopf said he was optimistic that China will clear the deal soon.

Source: EE News Europe