Trump issues order blocking Broadcom takeover of Qualcomm, citing national security
By Jacob Kastrenakes @jake_k
Mar 12, 2018, 6:42pm EDT
Photo by Chris Kleponis-Pool/Getty Images
President Donald Trump issued an order Monday evening blocking any merger of the chipmaking giants Broadcom and Qualcomm, saying it was necessary to protect national security. Broadcom’s control over Qualcomm, the order says, might allow the Singapore-based company to “take action that threatens to impair the national security of the United States.”
Broadcom has been trying to purchase Qualcomm for the last several months, but has continually been rebuffed. It’s since tried to stack Qualcomm’s board with friendly members. Trump’s order says that Broadcom will not be allowed to purchase or merge with Qualcomm in any way, and that all of the people Broadcom has proposed to Qualcomm’s board are disqualified.
It seems that Broadcom was aware that Trump or his Justice Department might attempt to block the merger on these grounds. Trump has done it before, blocking a Chinese state-owned company from buying an American semiconductor firm back in September.
Broadcom is currently in the process of moving its headquarters from Singapore to the US — according to Bloomberg, the move was expected to be complete by April 3rd. With the move, Broadcom seems ready to fight Trump’s order. In a statement, the company said “US national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation.”
Developing...
READ MORE: https://www.theverge.com/2018/3/12/17111766/broadcom-qualcomm-acquisition-blocked-trump-national-security
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