11 billion euro acquisition by Dutch microchip firm NXP

NXP microchip (Picture: Wikimedia Commons/Bomazi)NXP microchip (Picture: Wikimedia Commons/Bomazi)

Dutch microchip producer NXP Semiconductors has agreed to acquire a smaller rival, the American company Freescale, for 11.8 billion dollars (more than 10.7 billion euro) in cash and shares.

On Sunday NXP announced that it would pay $36.14 a share in cash and stock for Freescale. The deal will give Freescale shareholders about 32 percent shares of the merged company. NXP, the former chip division of Philips, wants to use the acquisition to save costs and to grow its market share.

The transaction should be closed in the second half of the year, pending the approval of shareholders and regulators.