US President Donald Trump continues to pursue his “America First” agenda, forcefully protecting US economic interests.
Thus, Trump blocked Broadcom’s proposed buyout of Qualcomm, citing national security concerns. The president’s decision to scuttle a $117 billion bid was based on a recommendation by the Committee on Foreign Investment in the United States (CFIUS).
Having analyzed the conditions of the takeover, CFIUS concluded that the foreign acquisition of Qualcomm was a national security threat. Even Broadcom Chief Executive Officer Hock Tan’s visit to Pentagon in an attempt to salvage the transaction did not convince security officials.
If the acquisition had gone through, it would be the biggest ever technology deal.
However, Trump was adamant: “There is credible evidence that leads me to believe that Broadcom Ltd." by acquiring Qualcomm "might take action that threatens to impair the national security of the United States."
Broadcom has nevertheless said it would continue with plans to move its legal headquarters from Singapore to the United States. Hock Tan believes that the Qualcomm-Broadcom merger will actually contribute to US interests, promoting the development of 5G wireless networks.
