Qualcomm Inc. still plans to close its acquisition of Netherlands-based NXP Semiconductors N.V. by the end of 2017, according to a statement issued Jan. 27 by NXP (Nasdaq: NXPI).
The Dutch semiconductor maker announced that its shareholders had approved all proposals related to Qualcomm’s tender offer for NXP shares. Some 95 percent of votes were cast in favor of the proposals.
Qualcomm (Nasdaq: QCOM) said on Nov. 18 that it wanted to acquire all outstanding shares of NXP for $110 per share. Qualcomm plans to use its accumulated cash to diversify its product line — NXP has an appealing automotive semiconductor line — and return Qualcomm to the growth it once enjoyed.
Qualcomm shares recently took a tumble with news that the U.S. Federal Trade Commission and Apple Inc. were suing the company, alleging anticompetitive practices. The company also paid an $868 million fine to South Korean regulators who alleged anticompetitive behavior. Qualcomm said it plans to fight all of the actions.
At least one analyst predicted all of the antitrust woes will delay approval from regulators in the United States, the European Union and governments in Asia. Qualcomm originally said it planned to close by the end of the calendar year, and the new statement reiterates that prediction.
At least 80 percent of NXP shares must be tendered and not withdrawn prior to the expiration of Qualcomm’s tender offer. The tender offer expires Feb. 6 but it could be extended.