home page> Industry information> Chen Huiming: Why did Qualcomm refuse to restart the NZP acquisition?

Chen Huiming: Why did Qualcomm refuse to restart the NZP acquisition?

Form: 爱集微 2018/12/6 Browse:1432 Keywords: high pass

In a statement issued by the White House after the G20 Summit in Argentina, China's President Xi Jinping said.“We are open to the acquisition of Enzhipu by Qualcomm, which has not passed the Customs before.”The case may be sent again.

But Reuters quoted an email from a Qualcomm representative as saying that“虽然我们很感激中美两国领导人就这宗收购案做出的评论,但(交易)截至日期已过,这意味着交易已经告终。高通方面认为此事已经结束。”



So why did Qualcomm refuse? Hong Kong Juxin Capital Management Partner Chen Huiming said that cross-border mergers and acquisitions“Love”It's hard. Once time has passed, both subjective and objective conditions have changed.

Previously, Qualcomm had spent a year and a half preparing to acquire En Zhipu. The US and EU governments released it one after another. However, they delayed it repeatedly because of the Sino-US trade war. Chen Huiming, who is familiar with the merger and acquisition process and the operation of the semiconductor industry, said that Qualcomm had spent a lot of time lobbying, but still delayed the deadline for merger and acquisition. The board of directors of any private enterprise could not wait forever, and Qualcomm had to give up.

In addition, some analysts said that Qualcomm's rejection of the proposal may be related to changes in its strategy in the 5G era.

Qualcomm has gone to great lengths to acquire Enzhipu, which is precisely related to its advantages in the Internet of Things. In the coming 5G era, due to the arrival of high network speed, the industry related to the Internet of Things will get tremendous development. As a semiconductor company with key influence in automotive electronics, consumer electronics, industrial control and other fields, En Zhipu's value is self-evident.

For Qualcomm, the acquisition of EnZhiPu will cover more areas of its 5G technology, but from the current strategy, Qualcomm is more likely to concentrate its technology on communication and computer fields for further cultivation, rather than comprehensive coverage.

Moreover, as far as the current 5G development is concerned, there are still many competing firms. Nobody has obvious advantages at present. If the technology is too dispersed, it may drag down the development of the advantageous business.

So is it possible for Qualcomm to restart its acquisition? What about the acquisition price if it is restarted?

Chen Huiming's answer is:“Never say never.”(never say no)

Chen Huiming described:“Cross-border mergers and acquisitions are very complex cases, just like love, love has changed over time, it is not easy to start from scratch.”

In addition, Qualcomm has previously paid NZP a $2 billion break-up fee and launched a $30 billion Share Buyback program to calm shareholder dissatisfaction. NZP also announced a $5 billion treasury stock plan. Qualcomm and Enzhipu have invested a lot of money to buy back their stocks, which makes the two businesses less willing to resume negotiations at this stage.

Chen Huiming said that it is undeniable that the success rate of M&A is not high, and the success rate of cross-border M&A is even lower.

Qualcomm has its advantages in the development of 5G. 5G is a communication infrastructure and a networking standard, and its application will exceed everyone's imagination.

En Zhipu is the leading company in the innovation fields of electric vehicles, auto-driving and so on. Its merger and acquisition with Gao Tong is a strong combination. Therefore, if it is only a strategic cooperation, it is only a project cooperation. If it becomes a company, its resource integration and its impact on the industrial chain ecosystem will be even greater.

也因此,未来高通、恩智浦重启并购的可能性多大? 由以上观点来推论,他会认为,“Never say never.”

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