Chinese Wingtech Technology Plans to buy Nexperia for $3.63 billion.
Following closing of the transactions, Wingtech will own a 75.86% stake in the Dutch company.
Wingtech plans to raise up to 4.63 billion yuan in a private placement to pay for Nexperia.
Wingtech will gain control of the Dutch company by buying a majority stake from Nexperia’s Chinese shareholders. A consortium of Chinese financial investors consisting of Beijing Jianguang Asset Management and Wise Road Capital bought the company for $2.1 billion in 2016.
Earlier in September, the Chinese giant said that it will pay 6.7 billion Chinese yuan to buy a stake from another Nexperia owner.
Following closing of the transactions, Wingtech will own a 75.86% stake in the Dutch company. The deal values Nexperia at over $5 billion.
Nexperia, which is based in Nijmegen, The Netherlands, was previously owned by NXP Semiconductors. The company supplies components for the semiconductor sector and among its clients are Apple and Samsung Electronics.
The company added that it will enter the car electronics segment after the Nexperia transaction is completed. Automotive electronics is the largest business of Nexperia.
Wingtech said in a statement that it is the largest smartphone original design manufacturer in the world in terms of volume, with more than 10% market share globally.
Wingtech plans to raise up to 4.63 billion yuan in a private placement to pay for Nexperia. The Chinese company’s stock has been suspended since April this year.
The deal is subject to approvals from the respective regulators and the Committee on Foreign Investment in the United States.
Earlier this year, regulators in China blocked the $44 billion merger of Qualcomm and NXP after the trade tensions between China and the United States continued to escalate. Currently, the White House has imposed tariffs on $200 billion of Chinese goods.