Broadcom withdraws Qualcomm offer after Trump blocks bid

US President Donald Trump in November welcomed Broadcom CEO Hock Tan's decision to move the company back to the United States, b
US President Donald Trump in November welcomed Broadcom CEO Hock Tan's decision to move the company back to the United States, but this week blocked the Singapore firm's planned takeover of US chip rival Qualcomm

Singapore-based Broadcom said Wednesday it was abandoning efforts to take over US smartphone chipmaker Qualcomm, two days after its bid was blocked by President Donald Trump over national security concerns.

"Although we are disappointed with this outcome, Broadcom will comply" with the order blocking its effort to buy Qualcomm, it said in a statement.

Broadcom said it had withdrawn its candidates for the board of directors of Qualcomm, which it had hoped shareholders would elect to endorse the $117 billion deal that would have been the biggest mergers in the tech sector.

Qualcomm, which is the dominant maker of microprocessors for smartphones, had rejected the unsolicited offers from Broadcom, which makes an array of chips for , set-top boxes and electronic displays.

Qualcomm insisted the price offered by Broadcom was too low and that it has a bright future on its own, especially ahead of a transition to fifth-generation (5G) wireless communications networks.

The Committee on Foreign Investment in the United States, which said over the weekend it had "confirmed" national security concerns, indicated that a Broadcom-Qualcomm merger could weaken Qualcomm's leadership in the field.

This would likely help Chinese competitors such as telecommunications firm Huawei, particularly in the emerging 5G blazing fast wireless internet, where a stronger China could present a national security issue.

Trump issued on Monday an order barring the proposed mega-acquisition, saying there is credible evidence such a deal "threatens to impair the national of the United States," according to a White House statement.

Broadcom indicated in its statement it will move forward with its effort to move its headquarters back to the United States.


Explore further

Qualcomm requests national security review of Broadcom bid

© 2018 AFP

Citation: Broadcom withdraws Qualcomm offer after Trump blocks bid (2018, March 14) retrieved 15 September 2019 from https://phys.org/news/2018-03-broadcom-qualcomm-trump-blocks.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
4 shares

Feedback to editors

User comments

Mar 14, 2018
Yeah, the dumpster was scared the chinese could access his online porn. And then crack jokes about his poor taste in coprolite porn .

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