US: Broadcom Officially Drops Qualcomm Bid After Trump Decision

Broadcom is officially withdrawing its US$117 billion bid to buy US chipmaker Qualcomm, two days after US President Donald Trump blocked the Singapore company’s ambitions over national security fears.

Wednesday’s move is a formality since the presidential order issued Monday, March 12, had ensured the deal would be killed in any US regulatory review.

Broadcom said Wednesday that it was disappointed with Trump’s decision. The company withdrew its proposed candidates for Qualcomm’s board, but still plans to move its headquarters to the United States. Broadcom had its headquarters in Irvine, California, until a Singapore-based company bought it in 2015. Qualcomm had rejected Broadcom’s unsolicited offer in February before the government stepped in.

“Broadcom’s board of directors and management team sincerely appreciate the significant support we received from the Qualcomm and Broadcom stockholders throughout this process,” Broadcom said.

Mr. Trump’s order came after a government panel tasked with reviewing the national security implications for business deals disclosed serious concerns about the bid. The panel’s finding was in keeping with the misgivings within the White House about China gaining access to important technologies like the nascent wireless standard known as 5G.

Full Content: New York Times

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