Jim Cramer: NXP Is Unloading a Commodity Business

NXP Semiconductors (NXPI) - Get Report is selling its low-tech commodity chips to spruce up its balance sheet, says TheStreet's Jim Cramer. Shares of NXP are lower on Tuesday as the company said it is selling its standard products business to a group of Chinese investors for about $2.75 billion. The unit will be sold to Beijing Jianguang Asset Management and Wise Road Capital. The segment had revenue of $1.2 billion in 2015. About 11,000 NXP employees will be transferred to a new company called Nexperia. The transaction is expected to close in the first quarter of 2017.

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.