Politicoreported that the decision to block the buyout come after Committee on Foreign Investment in the United States determined that the takeover would diminish Qualcomm's investment in 5G technology, which would play to China's favor.
This is not the first time Donald Trump has intervened in the acquisition of a US company by a foreign entity. Even though Huawei is in no way directly connected to the deal (it does use chips from both in its telecom equipment), CFIUS is concerned that after the acquisition, Broadcom would slash Qualcomm's research and development (R&D) funding. A Qualcomm-Broadcom deal could be the biggest technology sector takeover on record.
Broadcom has said that it is cooperating with the USA government in every way to ensure that the deal is safe.
A CFIUS investigation of the proposed acquisition so far has "confirmed" national security concerns earlier identified by United States officials, according to the letter.
This order further demonstrates the seriousness of Trump's "America First" protectionist position on trade, and will have consequences beyond the Qualcomm-Broadcom deal.
Qualcomm expressed doubts of the acquisition already when Broadcom was repeatedly changing the offer due to national security concerns, citing the fact that many Chinese acquisition attempts were blocked the U.S. Another concern, from a broader industry perspective, is that a united BroadcomQualcomm entity could control approx 65 per cent of the bill-of-materials that goes into smartphone handsets.
The decision by President Donald Trump to scuttle a hostile takeover by Singapore's Broadcom of the USA chipmaker Qualcomm caught some on Wall Street off guard. The two companies running head-to-head in this race are USA -based Qualcomm and China-based Huawei (New York Times).
Broadcom, a Singapore-based company, has increasing ties with China.
Fortune contacted Broadcom and Qualcomm for comment and will update this story if they respond.
Huawei has been forging closer commercial ties with big telecom operators across Europe and Asia, putting it in prime position to lead the global race for 5G networks despite USA concerns. That could allow Chinese companies, namely Huawei Technologies Co, to become the dominant supplier, the U.S. said.
While Broadcom pursues Qualcomm and Intel waits, Qualcomm has also put a cash offer on the table to acquire another chipmaker, Netherlands-based NXP Semiconductors.
The administration did not detail its national security concerns, but CFIUS last week sent a letter to the attorneys of the two companies saying it was concerned research and development at Qualcomm might atrophy under Broadcom's direction, according to a copy that was reviewed by The Washington Post.
The Cowgirls' three senior starters - Kaylee Jensen, Mandy Coleman and Loryn Goodwin - will get one last shot at the Big Dance. It went 10-6 in the ACC before getting upset by Virginia Tech in the first round of the ACC Tournament on March 1.
Sixty-six percent of the 464,000 rank-and-file members of the Social Democrats party on Saturday agreed to form a coalition . The German Chancellor, Angela Merkel was voted for her fourth term by the Social Democrats Party (SDP) on Sunday.
France, the former colonial power in the Sahel region, has deployed 4,000 troops to support the five-country G5 joint force. French military experts are expected in Ouagadougou to help with the probe, according to a government statement .
Non-working smoke alarms rob residents of the protective benefits home fire safety devices were created to provide. Additionally, the International Association of Fire Chiefs recommends replacing smoke alarms every 10 years.
NASA is accepting passengers until April 27 and then will load their names onto a memory card that will go onto the probe. This summer, it plans to send a spacecraft to the scorching ball of fire, and onboard could be your name.
To recall, 21 people sought medical treatment after the poisoning of former GRU Colonel Sergey Skripal and his daughter Yuliya. For experts in chemical, biological and nuclear warfare, even seemingly simple tasks are complex and unsafe .
This is how Indian Railways, which employs 91,000 women, is carving out a new image of gender equality in its huge operations. Asia's first woman loco-pilot Surekha Yadav will motor the train along with assistant loco-pilot Trushna Joshi.
The energy behemoth has significant business dealings in sub-Saharan Africa, including in Chad, Nigeria and Equatorial Guinea. At the press conference, Tillerson said he had "a very good exchange" with Ethiopian officials about counterterrorism efforts.
Certain curbs have also been imposed on export of industrial machinery, iron, steel and other metals, the notification said. Last November, North Korea's tyrant Kim Jong Un was testing missiles that could reach the continental United States.
Abercrombie is closing 60 stores this year
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Richard Sherman Trade: Seahawks Exploring Options For CB
Richard Sherman , the four-time Pro Bowl cornerback and one of the NFL's biggest stars, appears to be on the way out of Seattle. Nothing is official, and Sherman texted ESPN's Josina Anderson on Wednesday, telling her that he has not "been told anything".
2612 terrorists 'neutralized' in Turkey's Syria op
If confirmed, Rajo would be the largest center in Afrin to be captured since the Turkish offensive began on Jan.20. A Turkish-backed Free Syrian Army fighter is seen in Afrin, Syria on March 2, 2018.
Crude Oil Prices Extend Month Losses
Oil prices climbed back from early losses to settle higher Friday as prices reacted to moves in equities and the dollar. Those settlement prices represented a modest recovery from session lows, when benchmarks had slid more than a dollar.