As of today, China has not announced whether it will approve Qualcomm's acquisition of NXP Semiconductors, which means that the world's largest mobile phone chip maker has abandoned its $44 billion acquisition of NXP.
According to the previous acquisition agreement between Qualcomm and NXP, if Qualcomm does not get approval from Chinese regulators before the deadline, it will not be able to complete the transaction and will need to pay NXP a $2 billion cancellation fee.
Qualcomm said in its earnings report today that the company will not extend the acquisition agreement again. Qualcomm CEO Steve Mollenkopf said in a statement: "We intend to terminate the acquisition of NXP's agreement at the end of today's agreement, and wait for any new important progress. After the termination of the agreement, we plan to repurchase shares worth up to $30 billion to deliver high value to our shareholders. We believe that the company is moving forward, reducing uncertainty in the business, and focusing on the business itself is what we should do. "
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