Qualcomm Said to Win EU Approval for NXP Deal by End of Year

Qualcomm Said to Win EU Approval for NXP Deal by End of Year
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Qualcomm may win European Union approval for its takeover of NXP Semiconductors by the end of the year after striking a final deal with regulators on patent licensing issues, according to Bloomberg, citing people familiar with the review.

Regulators have dropped their concerns after accepting Qualcomm’s pledge not to acquire standard essential and system-level patents belonging to NXP, according to one of the people, who asked not to be identified. Winning EU approval for the $47 billion deal could bolster the company’s defense against a multibillion-dollar bid from Broadcom.

The company is promising to maintain current licensing terms for NXP’s Mifare technology, used in swipe cards for the London Underground, and to ensure NXP chips remain interoperable with others. The EU tested concessions Qualcomm submitted last month, which won over some of the initial critics of the deal.

While Qualcomm and NXP aim to close the deal by the end of the year, there’s “a potential for the close to slip into 2018 based on the current status of approvals,“ NXP CEO Rick Clemmer said earlier this month. Qualcomm CEO  Steve Mollenkopf has said the companies are "constructively working with each remaining regulator." EU and Chinese antitrust authorities are the largest hurdles the deal must clear.

Completing the NXP purchase quickly might make Qualcomm more difficult for Broadcom to swallow, adding an overlap on WiFi chips for regulators to scrutinize. Qualcomm rejected a $105 billion offer earlier this week, telling shareholders that the bid undervalued the company and "comes with significant regulatory uncertainty." Broadcom has said its offer stands whether or not Qualcomm can wrap up the NXP deal on current terms.