Donald Trump Kills Broadcom’s $117B Qualcomm Bid: Here’s Why

Donald Trump Kills Broadcom’s $117B Qualcomm Bid: Here’s Why
Gage Skidmore / Flickr

In an extra-ordinary turn of events on Monday, President Donald Trump blocked Broadcom’s $117 billion bid for Qualcomm citing it as a threat to national interest. Singapore-based Broadcom, on the other hand, disagrees with Trump’s decision, saying its acquisition of Qualcomm does not pose any security risk.

Supporting his decision to block the deal, Donald Trump said there is “credible evidence” that Broadcom and its affiliates “might take action that threatens to impair the national security of the United States.” Further, Donald Trump ordered that both Qualcomm and Broadcom must “immediately and permanently abandon the proposed takeover.”

CFIUS or the Committee on Foreign Investment in the United States has been keeping an eye on Broadcom’s hostile takeover of Qualcomm. The agency believes that the acquisition would give a foreign entity control of a U.S. business. Further, the agency is also concerned that the deal could prove a setback for the U.S. in the development of 5G technology, and at the same time, gives an edge to China.

Massif Capital’s Top Short Bets In The Real Asset Space [Exclisuve]