We’re not gonna go political but this is perhaps one of President Trump’s wisest decisions to date. The Qualcomm-Broadcom deal will never happen as the US President already blocked the plan. He said there’s the concern of national security. Fair enough. We get the point. Broadcom is owned by foreigners. This company based in Singapore has been trying to acquire Qualcomm in a $120 billion dollar deal. That is a lot of money but Qualcomm has been resisting the offer, saying the company is worth more than that.
Trump has officially and legally declared an order to block the possible acquisition. This means it will never happen. The government mentioned this take over could “impair the national security of the United States.” The order also states the two companies “shall immediately and permanently abandon the proposed takeover … [they will also] certify in writing to the Committee on Foreign Investment in the United States (CFIUS) that such termination has been effected…”
Qualcomm declined Broadcom’s multi-billion dollar deal last February. It has been fighting the Broadcom bid and the board has been planning a strategy against it.
We noted something might change once the new board members take over. The acquisition may become a reality but since Trump has an order, it will no longer happen. It’s a permanent block that prevents any takeover. Both companies must also now report to CFIUS every week and prove compliance. The business plan must be fully terminated and a certification that such has happened must be submitted to the CFIUS.
VIA: SlashGear
