Qualcomm’s acquisition of NXP Semiconductors NV was approved by US antitrust regulators this week, according to a statement from Qualcomm picked up by Reuters. As a result, it seems Qualcomm is free to move forward with the acquisition without any likely restraints. The statement provided by Qualcomm notes that the Hart-Scott-Rodino Antitrust Improvements Act's (otherwise known as the 'HSR Act') waiting period has now expired. This is an act which was previously brought in as an amendment to antitrust laws in the US and is designed to ensure that any mergers or purchases do not negatively affect the US market or industry in question. This is a period that is often used by the likes of the Federal Communications Commission (FCC) and the Department of Justice (DoJ) to investigate any such merger or acquisition and to act accordingly, if deemed necessary. Needless to say, with Qualcomm confirming that the waiting period has now come to an end, it does seem as though this is a purchase that will not be subject to any government interjection at any point.
The news on Qualcomm acquiring NXP came through back in October of last year and did have a significant impact. Mostly due to this being the largest ever acquisition within the semiconductor industry, with Qualcomm reportedly paying $47 billion for NXP. Although, the impact of such an acquisition is also going to be of significance for Qualcomm personally. As it is understood that in acquiring NXP, Qualcomm will be positioning itself in a much better place to expand further into newer and emerging technologies. The Internet of Things (IoT) and self-driving cars being two such examples. Likewise, with NXP also highly focused on security and digital networking industries, this acquisition may open up even more doors for Qualcomm going forward.
Back to the most recent announcement though, and for those who already hold stock in NXP Semiconductors NV, Qualcomm has also announced an extension to its tender offer - the option to tender stock for cash. Which means those looking to sell their stock at the current agreed price now have until May 2, 2017, at 5 p.m. (EDT) to do so.