Because according to the monopoly laws of various countries, as long as the acquired enterprise does business in the country, it needs the approval of the local anti-monopoly department. The products of Qualcomm and NXP are sold all over the world. The products launched by the merged company have potential price monopoly, which may harm the interests of local buyers. Therefore, the acquisition needs to be approved by multinational antitrust agencies.
At present, among the nine countries that need anti-monopoly approval, Qualcomm's acquisition has been approved by eight countries, leaving only China. Mainland China is NXP's largest market, accounting for more than 20% of the company's total operating income. Therefore, China's attitude determines the success of the merger. On April 9/kloc-0, Qualcomm announced that the final transaction time was scheduled for July 25, 20 18. If China still fails to approve the merger by then, Qualcomm will pay NXP a termination fee of US$ 2 billion.
In addition, CCID Research Company released a report saying that Qualcomm has long held a monopoly position in the field of mobile phone chips, while NXP has an absolute monopoly position in financial IC card chips, mobile payment security units and NFC chips. The merger of these two giant companies will surely make China bear the same heavy burden as the 2G and 3G baseband chip market in the fields of semiconductors, Internet of Things, Internet of Vehicles, mobile payment and intelligent transportation. In the future, the level of industrial development will lag behind the related industries in the United States for a long time, and the main profits of the industry will also be seized by American companies. This is the main reason for our country's delay in agreeing.