Trump blocks Broadcom takeover bid for Qualcomm

President Donald Trump blocked Singapore chipmaker Broadcom from pursuing a hostile takeover of US rival Qualcomm, ruling the proposed combination would imperil national security. The decision, announced late Monday, abruptly ends Broadcom’s four- month, $ 117 billion bid to buy Qualcomm — a deal that would have been the largest ever completed in the technology industry.

In a statement, Broadcom said it “strongly disagrees” that the acquisition raises any national- security concerns. Qualcomm did not immediately respond to a request for comment. Trump’s order gives Broadcom few options other than to drop its bid, said Macquarie Securities analyst Srinivas Pajjuri.

Broadcom faced challenges almost from the start of its quest. Qualcomm quickly spurned its unsolicited suitor and continued to resist even after Broadcom raised its original offer from $ 103 billion. Broadcom’s Singapore connections complicated matters, even though the company maintained its physical headquarters in Silicon Valley and virtually all of its shareholders are in the US.

The Trump administration nevertheless baulked at the prospect of a prominent US chipmaker being owned by a foreign company, particularly at a time countries around the world are gearing up to build ultra- fast ‘ 5G’ mobile networks that could tip the balance of power in technology.

Although its name isn’t widely known outside the technology industry, Qualcomm is one of the world’s leading makers of the processors that power many smartphones and mobile devices. Qualcomm also owns patents on key pieces of mobile technology that Apple and other manufacturers rely upon in their products. It is fending off allegations of complaints filed by Apple. — AP