China dodges blame for Qualcomm-NXP merger demise

BEIJING: China yesterday sought to deflect blame after US chipmaker Qualcomm dropped a merger with Dutch rival NXP over its failure to receive Chinese regulatory blessing, with Beijing saying it was still open to discussions.

The unexpected statement came a day after the American tech giant called off the planned US$43-billion merger, which had failed to receive approval from Chinese antitrust authorities -- an apparent casualty of ongoing trade tensions between Washington and Beijing.

The State Administration for Market Regulation (SAMR) said it “knows that Qualcomm and NXP have decided to abandon the transaction, and finds that regrettable”.

“The results of our evaluation show that Qualcomm’s latest plan cannot resolve competition issues... we hope to continue communicating with Qualcomm to find a solution within the review period.”

It was not immediately clear whether the regulator’s statement meant the deal could potentially be revived.

“Companies including Qualcomm, NXP are welcome to do business in China as long as they bring benefits to the Chinese people and help create a business environment that is international, lawful and convenient,” SAMR added.

The tie-up was aimed at creating a diversified chipmaker combining Qualcomm’s dominant position in smartphones and NXP’s foothold in the market for chips that power “internet of things” connected devices. — AFP