Foreign deals blocked by U.S. presidents in years past
President Trump has blocked Singapore chipmaker Broadcom from pursuing a hostile takeover of U.S. rival Qualcomm citing national security issues. But it’s not the first time a foreign deal has been nixed for this reason. Trump’s decision was based on the recommendation of the Committee on Foreign Investment in the United States, which reviews foreign purchases of U.S. entities.
Here is a look at other blocked deals over the years.
Canyon Bridge-Lattice Semiconductor:
In September, Trump blocked a Chinese government-financed firm’s acquisition of this Oregon chipmaker on national security grounds. The deal had been under scrutiny after it became clear that the prospective buyer, Canyon Bridge Capital Partners, which was offering $1.3 billion for the company, is funded by the Chinese government. Lattice manufactures a relatively low-tech class of programmable computer chips that can be adapted for a variety of uses.
Aixtron:
In 2016, then-President Barack Obama prohibited a Chinese company’s purchase of a U.S. subsidiary of German chipmaker Aixtron SE on national security grounds. The German government then blocked the entire purchase.
Ralls Corp.:
In 2012, Obama blocked Chineseowned Ralls Corp. from building a wind farm near a naval base in Oregon. Though Ralls is based in Delaware, it is a subsidiary of a Chinese company.
Huawei-3Leaf Systems:
China’s Huawei Technologies Ltd. called off its planned purchase of 3Leaf Systems in 2011, after the foreign investment committee refused to approve the deal citing national security concerns.
Huawei-3Com:
Huawei’s proposed deal to buy a stake in networking equipment maker 3Com fell apart in 2008 after the committee raised national security concerns. The worry, according to a New York Times report at the time, was that the Chinese company would be able to alter the electronic equipment and computer software sold to the military in a way to make it less effective.
Mamco Manufacturing:
In 1990, then-President George H.W. Bush blocked the purchase of MAMCO Manufacturing Inc., a maker of aircraft parts, by a Chinese stateowned company.