Broadcom lowered the offer for Qualcomm to $ 117 billion

By: Bohdan Chub | 22.02.2018, 15:37
Broadcom lowered the offer for Qualcomm to $ 117 billion

As expected, Broadcom did not approve Qualcomm's decision to accelerate the deal with NXP Semiconductors. As a response, the Singapore company lowered its offer to purchase an American chip maker from $ 121 billion to $ 117 billion.

What happened?

This week, Qualcomm increased the bid price for NXP by $ 6.2 billion. Thus, the company hopes to protect itself from takeover by Broadcom, which will again try to replace part of the board at the shareholders' meeting in March. The reaction of Broadcom did not wait - a potential buyer said that their previous offer of $ 82 per share of Qualcomm did not take into account the new arrangements with NXP, and now they are ready to pay only $ 79 per share or $ 117 billion in total. Other conditions, including $ 8 billion penalty in the event of a failure of the transaction, remain unchanged.

What's next?

Broadcom added that they are ready to return to the price of $ 82 per share, if Qualcomm can not complete the purchase of NXP. Previously, insiders reported that it would be much easier for the manufacturer to acquire Qualcomm without an "appendage". Since the activities of NXP and Broadcom largely overlap, the transaction may not receive regulatory approval because of possible reductions.

In any case, Broadcom is not going to give up. Due to the absorption of Qualcomm, the company expects to strengthen its position in the segment of 4G- and 5G-solutions.

Source: Broadcom