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Trump nixes Broadcom's $117B Qualcomm takeover

Trump nixes Broadcom's $117B Qualcomm takeover

"The proposed takeover of Qualcomm by the Purchaser is prohibited", the president said in his order, "and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited".

The Trump administration is concerned about the USA losing ground in 5G technology, the latest iteration of wireless technology, which is expected to greatly improve wireless networks and prove essential to the next generation of self-driving cars as well as other technologies.

In an unexpected turn of events, the American president Donald Trump blocks the takeover of chipmaker Qualcomm by Broadcom, for reasons of national security. The U.S. government scrutinized the takeover attempt because Qualcomm performs work for federal agencies. And he said he has directed Treasury Secretary Steven Mnuchin, to send a copy of his order blocking the merger to Qualcomm and Broadcom.

While its operating headquarters are in California, the company reincorporated in Singapore a few years ago. "In short, USA national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation". As a response, Broadcom publicly accused Qualcomm of "secretly" asking the committee to investigate the deal, which Qualcomm then denied.

A person familiar with CFIUS's investigation, who requested anonymity to speak freely about the matter, said this strategy may have doomed the transaction. Broadcom had announced the move in November after Tan met with Trump at the White House.

For instance, the United States committee cleared Beijing-based Naura Microelectronics Equipment Co in January to buy USA semiconductor manufacturing equipment maker Akrion Systems LLC. " In addition, the order states that Broadcom and Qualcomm "shall immediately and permanently abandon the proposed takeover ..." Jnba Financial Advisors holds 0.19% of its portfolio in QUALCOMM Incorporated (NASDAQ:QCOM) for 16,117 shares.

BJP, Congress put out lists for March 23 Rajya Sabha polls
For the two seats in Gujarat, supporters of state Congress president Bharatsinh Solanki and Shaktisinh Gohil were lobbying hard. Gujarat is all set to witness an acrimonious battle as four Rajya Sabha seats will fall vacant in April.

After being rebuffed Broadcom has been stacking Qualcomm's board with members friendly to the deal.

The Treasury Department, which leads CFIUS, had said the Qualcomm deal raised red flags because it threatened Qualcomm's leadership in developing the next generation of wireless technology.

CFIUS also would need to weigh that Qualcomm provides sensitive products to the US Defence Department, has a dominant role in US telecommunications infrastructure and performs significant research and development, Griner said.

Only a few days ago, Broadcom's buyout bid was of such high concern to lawmakers that they asked federal regulators to review the proposed $117 billion deal-and unusual move considering the two companies haven't come to terms on a buyout deal.

The Broadcom acquisition saga has been a long and troubled one. "This was a blatant, desperate act by Qualcomm to entrench its incumbent board of directors and prevent its own stockholders from voting for Broadcom's independent director nominees", Broadcom said in the statement a week ago.

While Broadcom shares were holding steady in the wake of the announcement, investors were less enthusiastic about Qualcomm's chances, and shares dropped 4.5 per cent after hours.


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