China is slowing its review of Qualcomm's proposed takeover of NXP Semiconductors due to the looming trade war with the US, people familiar with the matter told the Wall Street Journal. It's the last country that needs to clear the deal, and the delay has prompted Qualcomm to extend the bid again.
As of 12 April, Qualcomm had acquired 16.2 percent of NXP's shares. It's now extended the bid another week to 20 April. The companies have a deadline of 25 April to complete the deal.
According to the WSJ, Chinese authorities have also paused the review of Toshiba's sale of its memory chip business to a consortium led by US-based Bain Capital. A senior Toshiba official said this was "basically because of the trade tension".
People familiar with the matter said the NXP takeover is still facing resistance from China’s commerce ministry, which has indicated it is likely to seek more information from Qualcomm. The ministry faces a deadline in the coming week to make a decision, according to one of the people. To keep the review alive, Qualcomm and NXP could withdraw the current application and refile for an extension.
