M&A Review: What China’s new trade war tool means to investors

Beijing’s blocking of the Qualcomm/NXP merger sends a clear signal China is using its power to rule on mergers and acquisitions as a weapon against the US amid escalating trade tensions.

It's no secret US President Donald Trump has tapped his ability to review cross-border mergers and acquisitions as a tool in curbing China’s expansion globally. As the trade war heats up, it's no surprise China is looking to do the same too.

Beijing's new tactic emerged clearly in late July when, after nearly two years of work on the deal, US chipmaking giant Qualcomm terminated its proposed $44 billion acquisition of Dutch chipmaker NXP Semiconductors after failing to get regulatory approval from the Chinese authority.

A green light from China’s Ministry of Commerce Mofcom was the last regulatory hurdle for Qualcomm after it received approval from...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222