US computer chip giant Qualcomm said Wednesday it was set to drop a $43 billion acquisition of Dutch rival NXP after failing to win approval of antitrust authorities in China.
Qualcomm's chief executive Steve Mollenkopf said the California firm would end its effort when the bid expires at the end of the day absent any "new material developments."
The move comes amid increasing trade tensions between the United States and China.
Qualcomm had extended the deadline several times for the tie-up which would have given the dominant smartphone chipmaker firm a broader array of products including sensors and microprocessors for connected "internet of things" devices.
According to Qualcomm, the acquisition of NXP has received antitrust clearance from eight of the nine required government regulatory bodies around the world, with the matter still pending in China.
"We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments," Mollenkopf said in a statement with the company's quarterly earnings.
"In addition, as previously indicated, upon termination of the agreement, we intend to pursue a stock repurchase program of up to $30 billion to deliver significant value to our stockholders."
Based in the Dutch town of Eindhoven, NXP is a leading maker of chips for the auto industry, as well as for contactless payment systems.
A former division of the Dutch electronics giant Philips, it became independent in 2006.
Qualcomm said profit rose 41 percent from a year ago to $1.2 billion while revenues edged up four percent to $5.6 billion.