Trump blocks Qualcomm's acquisition

Trump blocks Qualcomm's acquisition
From Al Jazeera - March 13, 2018

President Donald Trump has blocked the $117bn takeover of chip maker Qualcomm by Singapore-based Broadcom.

Qualcomm makes key components found in many mobile phones and devices, and the US-basedchip company has faced successive legal challenges alleging it has engaged in unfair business practices.

Qualcomm had rejected Broadcom's bid, and in announcing his decision, Trump said "there is credible evidence" to indicate that Broadcom and its partners "might take action that threatens to impair the national security of the United States" if the takeover goes through.

The computer chip makers must "immediately and permanently abandon the proposed takeover", Trump said in a presidential order on Monday.

"The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited," Trump said.

Broadcom said in a statement it is reviewing the order but emphasised it "strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns".

Christina Wilkie (@christinawilkie) March 12, 2018

National security


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