NXP Semiconductors had earlier given Qualcomm time till July 25 to get Chinese approvals, failing which the deal would fall apart. The Chinese regulators had so far been holding up this deal amid the growing political spat between the US and China.
Related: Qualcomm drops NXP deal, stock climbs on upbeat Q3 results
And even before the Chinese government could pass their judgement, Qualcomm, on July 25, revealed its intention to walk away from the proposed merger. Reuters reports that Qualcomm has already paid NXP a $2 billion breakup fee.
Now that Qualcomm has called the deal off, the two companies plan for major share buybacks.
Related: Qualcomm might receive Chinese clearance for $44 billion deal
Meanwhile, China claims that the political war has not influenced their decision. According to the Chinese agency SAMR, the companies had failed to address the Chinese antitrust concerns. Despite the companies calling it quits, the agency said it hopes to keep the talks on with Qualcomm.