Broadcom plans to return to US in May
WASHINGTON: Singaporebased chipmaker Broadcom Ltd, which is seeking to buy rival Qualcomm Inc, plans to complete its move back to the United States by mid-may, according to sources familiar with the matter.
Wrapping up the move from Singapore and redomiciling in the United States relatively quickly could remove a roadblock to the proposed deal by calming concerns at the inter-agency Committee on Foreign Investment in the United States (CFIUS), which has the power to stop deals that could harm national security.
Broadcom said in November that it would return to the United States but did not say when the move would happen.
Broadcom shareholders will vote on the proposal by May 6, after which it must be confirmed by a judge. Once that happens, which is expected in early to mid-may, the redomiciling can happen quickly, according to a source familiar with the matter.
The entire process is likely to be wrapped up as soon as midmay, the source added.
Broadcom was a US company until it was bought in 2016 by Singapore’s Avago, which decided to use the name Broadcom.
Despite Broadcom’s plans to move back to the United States, CFIUS has already shown an interest in the proposed transaction because Broadcom has proposed six directors for Qualcomm’s 11-member board.