June 13, 2016 / 11:20 PM / 3 years ago

UPDATE 1-NXP to divest its standard products business for $2.75 bln

(Adds details on divestiture, background)

June 13 (Reuters) - NXP Semiconductors NV said it would sell its standard products business to a consortium of financial investors consisting of China’s Jianaguang Asset Management Co Ltd and private equity firm Wise Road Capital Management for about $2.75 billion.

Dwindling demand in computer and phone markets, once semiconductor industry mainstays, has fueled a year-long merger wave as firms look to higher-margin areas like automotive electronics for sales growth.

Chinese companies have shown particular interest in investing in foreign technology companies as Beijing seeks to become a global semiconductor powerhouse.

NXP’s standard products business, which makes semiconductor parts used in consumer electronics, will be an independent company headquartered in Nijmegen, the Netherlands, and renamed Nexperia after the deal closes.

Bloomberg first reported in April that NXP was considering a sale of its standard products business.

Credit Suisse acted as exclusive financial adviser to NXP.

The deal is expected to close in the first quarter of 2017. (Reporting by Nikhil Subba in Bengaluru; Editing by Chris Reese and Leslie Adler)

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