China Delays Deal Reviews as U.S. Trade Frictions Build
"China is slowing reviews of multibillion-dollar takeover deals being pursued by Qualcomm Inc. and Bain Capital," Wall Street Journal (April 13, Wei, Kubota, Mochizuki), "as U.S.-China trade tensions escalate." The delay could end up scuttling Qualcomm's planned $44 billion purchase of NXP Semiconductors -- a deal widely viewed as critical to Qualcomm's long-term survival. China is the only nation that has yet to sign off on the deal and on Toshiba Corp.'s planned $19 billion sale of its chip unit to a consortium led by Bain Capital. Sources warn that neither transaction is likely to move forward amid the looming trade war. "Stalling these deals is another possible leverage point for China as it seeks to fend off the Trump administration's plans to impose tariffs on up to $150 billion in Chinese goods in response to what the administration says are unfair trade practices," concludes the newspaper.
Abstract News © 2018 INFORMATION, INC.