Qualcomm has increased the offer to buy NXP to $ 44 billion

Qualcomm decided to accelerate the deal on the acquisition of Dutch NXP Semiconductors, raising the proposed price to $ 127.50 per share from the original $ 110. As a result, the total amount increased from $ 38 to $ 44 billion.

Why is Qualcomm?

On the purchase of NXP was announced as early as the fall of 2016, but some shareholders were unhappy with the terms of the deal and slowed down the process. Recently, Qualcomm met with the nine largest shareholders with a cumulative share of more than 28%. They agreed to a new proposal, but they must finally approve it no later than March 5.

One of the reasons for the rush - the deal will avoid the absorption of the American chipmaker by Broadcom, which again will try to replace some members of the Board of Directors of Qualcomm with their candidates at the meeting on March 6. At a minimum, Broadcom will have to reconsider the already declined price of $ 121 billion (until now the company insisted that the figure is final).

Why NXP?

Now, Qualcomm's business is heavily dependent on the supply of smartphones, which began to decline . The development of NXP will help the company strengthen its position in the fast-growing market of chips for cars and compensate for the drop in the mobile segment.

Source: Qualcomm