Trump blocks Broadcom's $117B takeover of Qualcomm

President Donald Trump blocked Singapore-based Broadcom's $117 billion hostile takeover bid for San Diego-based Qualcomm on March 12, according to The Wall Street Journal.

Here are four things to know.

1. In November, Broadcom launched its hostile bid for Qualcomm. The $117 billion deal could have been the technology industry's biggest-ever transaction.

2. President Trump blocked the deal on the recommendation of the Committee on Foreign Investment in the U.S. The agency suggested the deal posed national security risks.

3. CFIUS said it was worried the deal would allow Broadcom to stymie Qualcomm's research and development, which could weaken the U.S. against foreign rivals, such as China's Huawei Technologies, in developing next-generation wireless systems, according to the report.

4. On March 12, Broadcom said it was reviewing the president's order. "Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns," the company said in a statement to WSJ.

More articles on business:

Walt Disney shareholders reject CEO's nearly $50M annual pay plan: 4 things to know
Amazon enters second phase of HQ2 search
YouTube expands partnership with MLB

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


Top 40 Articles from the Past 6 Months