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US: FTC asks for more info from Broadcom in Qualcomm deal

 |  January 21, 2018

The US Federal Trade Commission has made a second request for information on chipmaker Broadcom’s US$103 billion hostile bid for Qualcomm Inc, Broadcom said in a statement on Friday 19, a move that could indicate heightened antitrust scrutiny.

The FTC review is part of a process under the Hart-Scott-Rodino Act to scrutinize potentially anti-competitive mergers. The vast majority of deals reviewed by the FTC and the Department of Justice are allowed to proceed after the first preliminary review, according to the FTC’s website.

However, if a second request is issued, companies must provide more information to the FTC. As part of its defense against Broadcom, Qualcomm has argued that any deal faces a long antitrust review.

Broadcom said that it had anticipated the second request as a normal part of the regulatory approval process.

“This signifies that Broadcom is moving into the next stage of the US antitrust review process,” Broadcom said in a statement.

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