You are here

Trump issues order to block Broadcom's takeover of Qualcomm

2018-03-12T014033Z_1044429451_RC137E26C7A0_RTRMADP_3_USA-GUNS-TRUMP.JPG
US President Donald Trump issued an executive order on Monday blocking Broadcom Ltd from acquiring Qualcomm Inc, scuttling a US$117 billion deal that had been subject to US government scrutiny on national security grounds.

[WASHINGTON] US President Donald Trump issued an executive order on Monday blocking Broadcom Ltd from acquiring Qualcomm Inc, scuttling a US$117 billion deal that had been subject to US government scrutiny on national security grounds.

The president acted on a recommendation by the Committee on Foreign Investment in the U.S., which reviews acquisitions of American firms by foreign investors. The decision to block the deal was unveiled just hours after Broadcom chief executive officer Hock Tan met with security officials at the Pentagon in a last-ditch effort to salvage the transaction.

"There is credible evidence that leads me to believe that Broadcom Ltd." by acquiring Qualcomm "might take action that threatens to impair the national security of the United States," Trump said in the order released on Monday evening in Washington.

Trump's order came after an investigation by CFIUS, which had said that Broadcom's acquisition would undermine Qualcomm's leadership in 5G wireless technology, opening the door for China's Huawei Technologies Co to become dominant.

sentifi.com

Market voices on:

Broadcom

BLOOMBERG