Broadcom’s of acquiring Qualcomm was going on as per plans with all the aspects taken care of, but U.S. President Donald Trump had other plans and has blocked the acquisition bid.
Trump has blocked the unsolicited $117-billion takeover bid of American chipmaker Qualcomm by Singapore-based rival Broadcom citing national security reasons. If the deal would had materialized it would have been the biggest technology deal ever amid concerns that it would allow China to take the lead in the booming chip market.
Trump, in his executive order, said there is “credible evidence” that leads him to believe that if Broadcom Limited took control of the San Diego-based Qualcomm it “might take action that threatens to impair the national security of the US”.
As such, Broadcom and Qualcomm “shall immediately and permanently abandon the proposed takeover”, Trump ordered.
“The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited,” Trump said in the executive order issued recently.