Broadcom drops bid for Qualcomm after Trump blocks deal

 
Caitlin Morrison
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The microchip maker said the deal was not a risk to national security (Source: Broadcom)

Broadcom has dropped its bid for Qualcomm, after Donald Trump blocked the deal citing national security concerns.

Singapore-based Broadcom, which manufactures microchips, made its first offer for Qualcomm last year, with a proposed deal worth $130bn (£93bn). However, the US chip-maker knocked back the bid, and all Broadcom's subsequent approaches.

Trump put a stop to the tie-up over fears the merger would give China the upper hand due to the fact that Broadcom is based in Singapore. The US President has taken a strongly competitive stance against China throughout his campaign and since taking up office, as he pursues his "America First" agenda.

Broadcom said in a statement released today: "Although we are disappointed with this outcome, Broadcom will comply with the Order. Broadcom will continue to move forward with its redomiciliation process and will hold its Special Meeting of Stockholders as planned on 23 March, 2018.

"Broadcom's board of directors and management team sincerely appreciate the significant support we received from the Qualcomm and Broadcom stockholders throughout this process.

"Broadcom thanks the independent nominees who stood for election to the Qualcomm board, not only for their time and effort but also for their unwavering commitment to act in the best interests of Qualcomm stockholders."

Broadcom added that it "appreciates" the following statement from US Treasury secretary and CFIUS chair Steven Mnuchin on March 12: "This decision is based on the facts and national security sensitivities related to this particular transaction only and is not intended to make any other statement about Broadcom or its employees, including its thousands of hard working and highly skilled US employees."

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