Chinese regulators approve Qualcomm's $43 billion merger with NXP

Qualcomm Inc’s $43 billion acquisition of NXP Semiconductors NV has been approved by Chinese regulators, the South China Morning Post reported, citing people familiar with the matter.

Clearance from China would remove the final regulatory hurdle for the purchase, which has been pending for more than 18 months. The decision by China’s Ministry of Commerce will allow the transaction to be completed ahead of a July deadline set by NXP, which said it would abandon the deal if it wasn’t approved by then. Qualcomm had no immediate comment on the Morning Post report.

China’s review of Qualcomm’s largest-ever acquisition has been languishing amid an escalating trade fight between the US and China, with NXP and Chinese telecom giant ZTE Corp. becoming bargaining chips in the negotiations. ZTE shares began trading again in Hong Kong earlier this week after the company agreed to a settlement with the U.S. Commerce Department over its business practices, but Senate lawmakers are pushing to keep stiff sanctions on the company, leaving the agreement’s prospects unclear.