FTC to probe Qualcomm’s $4.9 billion acquisition of Autotalks

The U.S. Federal Trade Commission (FTC) is expected to open an in-depth probe on Wednesday of Qualcomm’s purchase of Israeli auto-chip maker Autotalks, Politico reported on Tuesday, citing people familiar with the matter.

In May, Qualcomm had said it would acquire Israel’s Autotalks Ltd, a maker of chips used in crash-prevention technology in vehicles, but had not disclosed the terms of the deal.

Autotalks, which makes dedicated chips used in the V2X communications technology sector for manned and driverless vehicles, would help Qualcomm expand its automotive-related business.

Last week, EU regulators had also said that the U.S. chipmaker would have to seek EU antitrust approval for the planned takeover.

The EU competition watchdog said 15 EU countries, including France, Ireland, Italy, the Netherlands, Poland, Spain and Sweden, had asked it to examine the deal.

Earlier in August, Qualcomm had projected its fourth-quarter sales below market expectations as consumer spending on gadgets like smartphones remained stubbornly weak amid slowing global economic growth. Moneycontrol