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Broadcom's $117 Billion Bid For Qualcomm Has Been Blocked By Trump

Broadcom's $117 Billion Bid For Qualcomm Has Been Blocked By Trump

President Donald Trump on Monday issued an executive order effectively blocking Broadcom Ltd.'s $117 billion takeover bid for California-based Qualcomm Inc., citing national security grounds. On recommendation from the Committee on Foreign Investment in the United States, the president found there was "credible evidence" that the Singapore-incorporated Broadcom "might take action that threatens to impair the national".

Broadcom Ltd., the Singapore-based company that spent much of the past four months attempting to acquire fellow chip maker Qualcomm Inc., on Thursday said quarterly profit surged as it booked a one-time benefit of almost $6 billion tied to the US tax overhaul. It said Broadcom's attempted takeover of Qualcomm could pose a risk to US national security.

Although its name isn't widely known outside the technology industry, Qualcomm is one of the world's leading makers of the processors that power many smartphones and other mobile devices.

The editorial board notes, however, that Trump could use his authority to block foreign acquisitions of US companies to further protectionist aims.

The growing influence of Huawei is a major factor killing the Qualcomm-Broadcom deal.

Meanwhile, Broadcom has amassed a hefty war chest during its four-month quest for Qualcomm, including up to $100 billion in financing from American and Japanese banks. But the White House feels that the risk of America losing clout in 5G technology and similar fields rises to the level of a national security threat.

Winn-Dixie only closing one Louisiana store
Southeastern Grocers will close ninety-four stores across the southeast but the Winn-Dixie in Meridian is not on the list . Officials reported in a news release they expect the company to emerge through financial restructuring within the 90 days.

As such concerns emerged, Broadcom immediately jumped into action, pledging to invest in Qualcomm's 5G technology and accelerate its move to the US.

Trump's decision in this regard comes after Broadcom said last Friday that it will ask its shareholders to approve its plan to redomicile to the US. And if the acquisition had gone through, then it would be the largest technology deal made in the pages of history.

Although Broadcom is incorporated and based in Singapore, CEO Hock Tan announced late previous year while visiting Trump at the White House that the company would return its corporate headquarters to the United States, likely using San Jose as a base.

In a letter, the CFIUS had confirmed the national security concerns.

Broadcom's ambitions sparked US government concerns over which country will dominate the technology, as well as fears over national security.


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