The biggest acquisition in the semiconductor industry has received approval from US Antitrust Regulators, allowing Qualcomm to go ahead and acquire NXP Semiconductors for $47 Billion.
The waiting period required for companies under the Hart-Scott-Rodino Antitrust Improvements Act has expired, as Reuters quotes from Qualcomm. The HSR Act stipulates that parties must not complete certain mergers and acquisitions until they have made a detailed filing with the US Federal Trade Commission and the Department of Justice, and then wait for those agencies to determine that the transaction will not adversely affect US commerce under current antitrust laws.
NXP’s acquisition will help broaden Qualcomm’s scope as areas of focus under NXP were primarily related to the automotive industry. This will reduce the dependence of the parent company on smartphone chips, as Qualcomm is seeing rising competition from Chinese and other Asian manufacturers in this area, which is likely to have its toll on profit margins in the future.
Full Content: Reuters
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