Exclusive: Qualcomm set to win conditional Japanese antitrust okay for NXP deal – source

BRUSSELS (Reuters) – U.S. smartphone chipmaker Qualcomm (QCOM.O) is set to win “imminent” Japanese antitrust clearance for its $38-billion bid for NXP Semiconductors (NXPI.O) and gain Europe’s approval by the end of the year with slight tweaks to its concessions, a person familiar with the matter said.

Winning the green light from both competition authorities would take Qualcomm a major step forward to closing the deal and reinforce its fight against an unsolicited $103-billion takeover bid from Broadcom.

The Japan Fair Trade Commission (JFTC) “is expected to clear Qualcomm’s acquisition of NXP imminently,” the source said.

“The European Commission is expected to follow soon.”

Broadcom made its move last week in an effort to become the dominant supplier of chips used in the 1.5 billion or so smartphones expected to be sold around the world this year. Qualcomm has dismissed the offer, saying it undervalues the company.

Broadcom, Qualcomm and NXP together would have control over modems, Wi-Fi, GPS and near-field communications chips, a strong position that could concern customers such as Apple and Samsung Electronics Co Ltd (005930.KS) because of the bargaining power such a combined company could have to raise prices.

However, a combined company would also likely have a lower cost base and the flexibility to cut prices.