Broadcom speeds HQ move to US amid security review

March 12, 2018
US semiconductor and telecommunications product maker Qualcomm is the target of a takeover bid by Singapore-based Broadcom
US semiconductor and telecommunications equipment maker Qualcomm is the target of a takeover bid by Singapore-based Broadcom

Singapore-based chipmaker Broadcom said Monday that it would complete moving its headquarters to the United States by April 3, ahead of a planned shareholder vote by takeover target Qualcomm.

The announcement comes as US officials have found Broadcom's efforts to move to the US violate a recent government order and have also confirmed the proposed $117 billion acquisition poses a threat to US national , according a Monday news report.

The smartphone chipmaker Qualcomm, which opposes Broadcom's takeover efforts, appealed in January to the US Committee on Foreign Investment in the United States to review the proposed deal.

Last week, the US Treasury, which chairs the committee, directed Qualcomm to postpone a shareholder meeting while US officials examine the deal, saying it appeared to pose a threat to US national security.

By speeding up its move to the United States, Broadcom appears to be attempting to sidestep the CFIUS review.

"Broadcom's proposal to acquire Qualcomm has always been premised on the completion of Broadcom's previously announced plan to redomicile," the company said in a statement.

"In short, US national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation."

US officials have found recent Broadcom actions to speed up its move to the United States without providing the required five days' notice violate a March 5 CFIUS order, CNBC reported Monday.

US officials have also substantiated dangers to US from the proposed merger, the network reported, adding that Treasury had informed both Qualcomm and Broadcom of these findings on Sunday, ahead of a Monday meeting to discuss the matter.

The Wall Street Journal reported Friday that US chip producer Intel was considering buying Broadcom, which has a current market value above $100 billion, in a bid to prevent the Qualcomm deal from proceeding and stave off a competitive threat.

A Treasury spokesman did not immediately respond to an AFP request for comment.

Explore further: Qualcomm requests national security review of Broadcom bid

Related Stories

Qualcomm mulls 'next steps' in Broadcom takeover bid

February 15, 2018

Qualcomm said Wednesday its board would "promptly" consider a hostile $121 billion takeover bid by Singapore-based Broadcom following a meeting of top executives of the two computer chipmaking giants.

Qualcomm raises bid for NXP to about $43.22B

February 20, 2018

Qualcomm is raising its takeover bid for NXP Semiconductors by nearly 16 percent to about $43.22 billion, citing in part NXP's strong results since the companies first announced their merger in October 2016.

Qualcomm rejects Broadcom's nominees to board

December 22, 2017

Qualcomm says it won't back any of the candidates that Broadcom and Silver Lake Partners are proposing for its board of directors, saying they are conflicted and have no incremental skills or expertise to offer.

Qualcomm rejects $121 bn hostile Broadcom bid, again

February 16, 2018

US mobile chipmaking giant Qualcomm on Friday rejected for a second time a hostile $121 billion takeover bid from Singapore's Broadcom, but said it was open to "further discussions" on a tie-up.

Recommended for you

Coffee-based colloids for direct solar absorption

March 22, 2019

Solar energy is one of the most promising resources to help reduce fossil fuel consumption and mitigate greenhouse gas emissions to power a sustainable future. Devices presently in use to convert solar energy into thermal ...

EPA adviser is promoting harmful ideas, scientists say

March 22, 2019

The Trump administration's reliance on industry-funded environmental specialists is again coming under fire, this time by researchers who say that Louis Anthony "Tony" Cox Jr., who leads a key Environmental Protection Agency ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.