Shares of NXP (NXPI) Semiconductors gained more than 12% Monday after a report by Bloomberg that China will restart reviewing Qualcomm's acquisition bid for the firm.
Bloomberg said that Chinese regulators were looking to speed up their assessment of the deal, including solutions Qualcomm has put forward to protect the country's companies should the acquisition get approved.
Last month, the regulators said that Qualcomm's proposal went amiss of what the country needed in order to deal with market competition-related problems. Qualcomm backed off from the deal and reapplied for approval from Chinese regulators in April.
If approved, the deal would be a significant step towards preventing a trade war between the US and China that has been on the horizon of engulfing the two countries since February.
On Sunday, President Donald Trump was working with his Chinese counterpart in a bid to rescue the country's telecommunications equipment maker, ZTE Corporation, which had been at risk of collapsing due to a ban on buying American components.
The President took to his Twitter account saying that he would give the company fast way to get back into the business. At the time of writing, NXPI shares had gained $11.73, or 11.84% to trade at $110.74.
NXPI Earnings & Outlook
NXP Semiconductors reported 1Q2018 revenue of $2.27B, representing a decrease of 8% from the year-ago period, and an increase of approximately 3% year on year.
However, the company did not hold an earnings call neither did provide forward guidance for 1Q2018 due to its pending Qualcomm takeover.
In the first quarter, the company's GAAP operating margin stood at 6.1%, a decline from the 75.9% reported in 1Q2017 as a result of the $1.6B gain realized from the company's Standard Products divestment business during the period.
