Europe waves through Qualcomm's NXP slurp

Chip-maker promises to play nice with others to secure deal

By Richard Chirgwin

Posted in Business, 22nd January 2018 01:05 GMT

Qualcomm's NXP Semiconductor has been cleared by European Commission regulators, which makes it pretty much a done deal.

Last Thursday, the Commission (EC) said subject to the commitments it's already made, Qualcomm's US$47 billion acquisition can go ahead.

The Commission's concerns related to third-parties' access to NXP Semiconductor's technology after the takeover closed, and last October Qualcomm offered its concessions to the EC.

First on the Commission's list of concerns was licensing of NXP's MIFARE contactless card technology. Qualcomm has told the EC it will continue to offer licenses to the technology and trademarks on terms “at least as advantageous as those available today” for eight years.

The EC was also concerned about product interoperability, and again, Qualcomm says for eight years it will maintain interop between its products and competitors' (this covers Qualcomm baseband chips, and NXP's NFC and SE chipsets).

NXP's standards-essential NFC patents are excluded from the deal (and a few unspecified NFC patents that aren't standards-essential), and will be transferred to a third party.

Qualcomm has committed to grant worldwide royalty-free licenses to NXP patents, and has also promised not to enforce those patents.

With this acquisition all-but-settled, Qualcomm can now get back to fending off Broadcom's unsolicited acquisition attempt. ®

Sign up to our NewsletterGet IT in your inbox daily

3 Comments

More from The Register

Broadcom adds a few billion to its indecent proposal to Qualcomm

Reports say it wants to slap $120bn-$145bn big ones on table

Qualcomm asks Broadcom over for lunch and a proper chat about being bought

Brushes off latest $121bn bid as too low, too risky, but is willing to discuss deal

Qualcomm rejects Valentine's Day takeover love-in with Broadcom

Cheapo merger terms wouldn't get past regulator, it says

How very dare you, Qualcomm snarls at Broadcom's board bid

Mickey-taking Singapore biz turns takeover battle hostile

Broadcom confirms $103bn slurp offer for rival Qualcomm

They're super keen to get it done ASAP

Now, now, Qualcomm... Don't play hard to get, grins Broadcom

Once again, a rich powerful entity forgets that no means no

Qualcomm tells Broadcom: Pfffft! $103bn? You insult the very core of our cores

Biggest ever tech deal held up

'Qualcomm, we will buy you... for... one HUNDRED... BILLION DOLLARS' – Broadcom

And Marvell and Cavium also hopping into bed, allegedly

Broadcom confirms anti-trust probe, professes zero worries

Says probe doesn't impact wireless lines, leaving about a gazillion other products in play

European Commission refers Ireland to court over failure to collect €13bn in tax from Apple

Decision 'extremely regrettable', says Irish government