Qualcomm had previously submitted a Dollars 44 billion bid for rivals NXP Semiconductors only to see the bid declined by Chinese regulators amid the escalating trade war between China and US, making the company a victim of the dispute.
The Chinese president's openness to the deal was a sign of further cooperation on multiple issues, including corporate mergers, Kudlow told reporters.
Steve Mollenkopf, CEO, Qualcomm, was quoted by sources to say that the failure of the deal was a side effect of the mounting tensions due to trade imbalance between the USA and China. The email declared that though the company is grateful for the reconsideration and the comments, the deadline for the transaction has expired and hence the contemplated deal has been terminated.
Qualcomm considers the matter closed.
Chinese regulators did not have immediate comment.
Qualcomm walked away in July from the proposed acquisition of NXP after failing to secure Chinese regulatory approval, becoming one of the most high-profile victims of the escalating US-China trade war at the time.
In addition, Qualcomm has already moved ahead with a $30 billion stock buyback in the wake of the original acquisition failure, with $21 billion already spent, "making it significantly more hard to re-engage on a deal", said Rasgon. It has spent more than $20 billion (roughly Rs. 1.4 lakh crores) in share buybacks in the last 12 months. But Qualcomm has already paid a breakup fee in the deal and begun a $21 billion stock buyback program, they said, limiting its financial flexibility. The massive merger between Qualcomm and NXP have been approving in eight other jurisdictions.
Qualcomm upped its bid to $44 billion in February, only to scrap the deal in July after a regulatory deadline passed without approval from China's State Administration for Market Regulation (SAMR), which oversees antitrust regulation.
U.S. lawmakers also passed reforms earlier this year that increased CFIUS' scrutiny of deals.