Broadcom has been making strikes to procure Qualcomm for reasonably a while, with the latter corporate rejecting an be offering of $130 billion ultimate yr as a result of Qualcomm stated it “significantly” undervalues the corporate.
Since that preliminary rejection, rumors and expectancies pegged some other be offering to come back from Broadcom. But it looks as if that gained’t be going down in the end. The United States President despatched out an order the day past to dam any attainable acquisition of Qualcomm by means of Broadcom. The commentary reads, “The proposed takeover of Qualcomm by the Purchaser (Broadcom) is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether affected directly or indirectly, is also prohibited”.
Going additional, the reasoning in the back of the blocked acquisition seems to be nationwide security-related, because the commentary is going on to mention that there’s “credible evidence” that the acquisition, if allowed, Broadcom “might take action that threatens to impair the national security of the United States”.
Broadcom, for its section, is operating to get the verdict modified. It is these days operating to relocate its headquarters from Singapore to the United States, and its deliberate acquisition of Qualcomm is according to that deliberate transfer. Broadcom additionally knowledgeable Bloomberg that it “strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns.”
Sources: White House; Bloomberg (1); (2)
U.S. presidential order blocks Broadcom’s acquisition of Qualcomm