Qualcomm-Autotalks Deal Under EU Scrutiny Over V2X Chips

In a twist to international business proceedings, the European Commission has now mandated the U.S-based Qualcomm Inc QCOM to secure EU antitrust consent before concluding its acquisition of Israeli firm, Autotalks. 

This decision comes despite the transaction amount not surpassing the European Union's monetary benchmark for mandatory regulatory review.

Surprisingly, multiple nations from the EU bloc, such as France, Italy, and the Netherlands, have expressed a desire for the European Commission to dissect this deal, Reuters reports.

The central point of contention hinges around vehicle-to-everything (V2X) semiconductors - where both Qualcomm and Autotalks are dominant players in the European Economic Area (EEA). 

They're instrumental in enhancing traffic management, bolstering road safety, diminishing CO2 emissions, and propelling the march toward autonomous driving. 

The European Commission underscored the importance of ensuring stakeholders, such as original equipment manufacturers and infrastructure chiefs, continue obtaining V2X technology at fair rates and conditions.

Autotalks is a significant producer of chips essential for V2X communication tech, crucial for human-crewed and uncrewed vehicles, primarily focusing on elevating road safety levels. 

On the other hand, Qualcomm, recognized for its extensive operations in the mobile tech domain, revealed its intentions to acquire Autotalks this past May, marking a strategic move to augment its automotive segment. When reached for a statement, Qualcomm remained tight-lipped regarding the recent developments.

Lately, a host of acquisitions succumbed to regulatory opposition. The deals included the takeover of Intel Corp's INTC Tower Semiconductor Ltd TSEM.

Previously the Nvidia Corp NVDA and Softbank Group Corp SFTBY SFTBF owned Arm Ltd deal fell prey to regulatory opposition.

Price Action: QCOM shares traded lower by 0.65% at $109.41 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.