Firm hoping for approval of $44 billion NXP takeover
China is ready to approve Qualcomm Inc's $43 billion takeover of NXP Semiconductors NV if it gets assurances that the U.S. will lift a seven-year ban on Chinese telecoms giant ZTE Corp, Bloomberg reported Monday, citing people familiar with the matter.
China's antitrust authorities have cleared all factual investigations and are satisfied with the remedies Qualcomm is offering, with only procedural issues remaining, said the people on condition of anonymity.
Qualcomm is expecting to meet this week in Beijing with China's antitrust regulators in a final push to secure clearance for the acquisition, Reuters reported Sunday, citing sources.
The acquisition has been caught in the crosshairs of rising U.S.-China trade tensions, with sources saying an approval would depend on the progress of broader bilateral talks. The deal has got a nod from eight of the nine required global regulators, with Chinese clearance the only one pending.
Qualcomm is likely to meet Chinese regulators before U.S. Commerce Secretary Wilbur Ross arrives in China on Saturday, the sources briefed on Qualcomm's discussions said.
A Qualcomm team and officials from the State Administration for Market Regulation (SAMR) met in Beijing on Friday and had "productive" talks, the sources said.
The San Diego-based firm is now "cautiously optimistic" the deal will go forward, one of the sources said, amid recent indications of a thaw in U.S.-China trade tensions.
Qualcomm did not immediately reply to an email from Reuters seeking comment on Sunday, while calls to NXP went unanswered outside regular business hours.
Qualcomm is now preparing a new submission to SAMR aimed at providing final guarantees and assurances, the sources said.
China's market regulator did not immediately respond to a faxed request for comment.
Qualcomm in recent weeks has moved to restart discussions that have stalled since the end of last year.
The company in April was asked to refile its China anti-trust application to clear the NXP deal, after talks reached a dead end.
Cristiano Amon, Qualcomm's president, was in China on Saturday, attending a big data industry expo held in Guiyang, capital of Southwest China's Guizhou Province.
"We aim to improve the competitiveness of the big data industry in Guizhou and promote the development of the integrated circuit industry in China, and Qualcomm will continue to provide technology and funds for the big data industry development in Guizhou Province," Amon said.
Earlier this month, China's antitrust regulator approved Qualcomm's investment with a unit of State-owned Datang Telecom Technology to design, package and test smartphone chipsets, one year after the joint venture was announced.
On Thursday, Qualcomm announced artificial intelligence-related tie-ups with several Chinese companies including Baidu.
