Broadom’s $120 billion takeover of Qualcomm has been blocked by President Trump, citing national security concerns for the Singapore chip maker
President Trump issued a declaration on Monday blocking Broadcom’s buyout of rival Qualcomm, citing national security concerns.
Broadcom’s $121 billion proposed takeover to bridge the two chip giants would have been the biggest tech buyout in history, but the company’s Singapore headquarters had brought into question whether it would receive regulatory approval. In his statement, President Trump said there was “credible evidence” that the merger potentially “threatens to impair the national security of the United States.
“The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited,” Trump added.
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Broadcom had been scrambling to move its headquarters back to the United States, bumping up a shareholder vote on the decision from May 6 to March 23. Trump made his decision on recommendation from the Committee on Foreign Investment in the U. S. — which reviews deals between American companies and overseas investors. CFIUS had already warned the deal could be shelved, indicating Qualcomm’s push into 5G wireless technology could be derailed, opening the door for Chinese competitors.