- Qualcomm is planning to move forward with share buybacks instead of buying NXP.
- Qualcomm isn’t counting on Chinese regulators to rule in favor of its NXP deal.
- Qualcomm CEO Steve Mollenkopf will address his company’s share buyback plans during today’s conference call.
Qualcomm CEO Steve Mollenkopf said his company will terminate its acquisition of NXP by the end of the day and plans to buy back up to $30 billion of stock.
“We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments,” Mollenkopf said in a statement.
While there’s still a chance China’s State Administration for Market Regulation, or SAMR, could make a last minute announcement before 11:59 pm ET, Qualcomm now sees the likelihood of an agreement as very slim, said the person, who asked not to be named because the company’s discussions are private.
SAMR doesn’t need to formally make an announcement accepting or rejecting the deal. If it doesn’t make a ruling, the self-imposed deadline between Qualcomm and NXP will expire. Qualcomm will have to pay NXP a $2 billion breakup fee.