US: Broadcom could redomicile to the US soon

A report from Reuters has cited sources as saying that chipmaker Broadcom could be redomiciled to the US as early as May. Broadcom was originally founded in Irvine, California in 1991, but was later sold to Avago, which is incorporated in Singapore. Officials at Broadcom announced in November 2017 that the company would be moving back to the US at some point in the future, and now it seems a timeframe has been penciled in.

Broadcom said in November that it would return to the United States, but did not say when the move would happen. Broadcom shareholders will vote on the proposal by May 6, after which it must be confirmed by a judge. Once that happens, which is expected in early to mid-May, the redomiciling can happen quickly, according to a source familiar with the matter.

Despite Broadcom’s plans to move back to the United States, the Committee on Foreign Investment in the United States (CFIUS) has already shown an interest in the proposed transaction because Broadcom has proposed six directors for Qualcomm’s 11-member board. The vote on that slate is set for Tuesday, March 6.

“Broadcom could not and will not control the Qualcomm board – the essential basis for CFIUS jurisdiction – in the event some or all of the independent, Broadcom-nominated directors are elected,” the company said in a statement on Friday, March 2.

Full Content: Reuters

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