NXP Semiconductors followed Qualcomm Inc in announcing share buybacks worth billions of dollars on Thursday as the companies sought to compensate investors for the collapse of their $44 billon merger due to Chinese opposition.
WASHINGTON/BENGALURU (Reuters) – NXP Semiconductors followed Qualcomm Inc in announcing share buybacks worth billions of dollars on Thursday as the companies sought to compensate investors for the collapse of their $44 billon merger due to Chinese opposition.
U. S. Treasury Secretary Steven Mnuchin said it was unfortunate that China had not granted regulatory approval for the deal, seen by analysts as the quid pro quo for concessions made by Washington on Chinese phonemaker ZTE.
“I’m very disappointed that they didn’t get regulatory approval,” Mnuchin told CNBC in an interview.
“I think this is another example of where it was approved in every single other territory. We’re just looking for U. S. companies to be treated fairly.”
Qualcomm was due to pay NXP a long-agreed breakup fee of $2 billion by 9 a.m. eastern time and the Dutch chipmaker said it would buy back $5 billion worth of shares.
Qualcomm’s board on Wednesday raised its own repurchase authorization to $30 billion.
Qualcomm shares rose 5 percent in trading before the bell on Thursday while NXP shares sank 10 percent – a level the company has not seen since Qualcomm made a bid for the company in October 2016.
