Qualcomm ends two-year struggle to acquire NXP

The speculations revolving Qualcomm – NXP Semiconductors takeover has finally been put to rest after the US chipmaker officially terminated the deal that became a proxy in the US-China trade war. This puts an abrupt end to a two-year saga between Qualcomm (QCOM) and NXP (NXPI), as well as the semiconductor industry’s largest-ever deal.

The $44 billion aborted merger follows Broadcom’s (AVGO) failed takeover attempt of Qualcomm. The Qualcomm – Broadcom deal looked poised to succeed but was eventually blocked by the US government on the grounds of national security. Meanwhile, Qualcomm’s takeover of its Dutch rival, NXP, fell apart after the company did not get the required final regulatory approval from China.

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.