Donald Trump Kills Broadcom's $117B Qualcomm Bid: Here's Why

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"Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns".

However, an Intel-Broadcom combination appears unlikely, especially after Trump's executive order, Ellis said. His offer for Qualcomm would have been the biggest transaction in the history of the technology industry.

"There is credible evidence ... that Broadcom ... through exercising control of Qualcomm ... might take action that threatens to impair the national security of the United States", the order explains.

Being based in the United States as opposed to Singapore will allow Broadcom to make what it believes will be acquisitions of USA companies that will not fall within the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes deals for potential national security concerns. "Given Broadcom's public disclosures about the redomiciliation process since last November, as well as its direct communications to CFIUS, Broadcom has been fully transparent with CFIUS about the redomiciliation process, and believes it is in full compliance with the March 4 Interim Order".

The committee had raised concerns that any takeover may hinder progress in achieving 5G mobile networks because of Qualcomm's current position as one of the leading makers of processors that power smartphones.

Broadcom and Qualcomm could not be immediately reached for comment.

"While the United States remains dominant in the standards-setting space now, China would likely compete robustly to fill any void left by Qualcomm as a result of this hostile takeover". "That writing could potentially preclude an Intel and Broadcom combination".

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Trump signed an order late on Monday to halt what would have been the biggest-ever technology deal on concerns that a takeover of Qualcomm by the Singapore-based company would erode the United States' lead in mobile technology and give China the upper hand.

The order is in response to Singapore-based Broadcom's proposal to acquire San Diego-based Qualcomm for $121bn, a move that Qualcomm's board of directors unanimously rejected last month.

Broadcom meanwhile is working to address the concerns that its acquisition will pose a security risk. Plus, Qualcomm still hasn't closed its purchase of NXP Semiconductors (NXPI), which needs to get approval from regulators in China. Broadcom is now in the process of moving its headquarters from Singapore to the USA, a move expected to be complete by April 3. Moreover, in a statement to Trump's reply, a company spokesman said.

As of now, it is not clear if such a move from the Singapore-based company will win Trump's approval.

Today's order was not the first time that the Trump administration has impeded a major takeover deal.

The acquisitive communications chip maker recently closed a deal to acquire Brocade Communications Systems, a USA wireless and wired device manufacturer that also serves the enterprise storage market with storage switches for all-flash datacenters. The U.S. authorities also recently blocked a proposal by Alibaba's Ant Financial to acquire the money transfer firm Moneygram.

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