World Economy

$11.8b Chip Deal

$11.8b Chip Deal$11.8b Chip Deal

Dutch chipmaker NXP Semiconductors NV agreed to buy smaller US rival Freescale Semiconductor Ltd. for about $11.8b in cash and stock to expand its market share in chips for cars and reduce costs, Bloomberg said. Freescale shareholders will get $6.25 in cash and 0.3521 of an NXP share for each Freescale common share, the companies said. The deal values Freescale at $36.14 a share, almost matching the stock’s closing price Feb. 27 of $36.11. Including Austin, Texas-based Freescale’s debt, the purchase price is about $16.7b. Both companies are major suppliers of chips for use in cars and are seeking to benefit as vehicles become more advanced, requiring more processors and electronics.