President Donald Trump has blocked Broadcom from pursuing a hostile takeover of Qualcomm, on the recommendation of the US Committee on Foreign Investment which reviews foreign purchases of US organisations.
Earlier this month, the committee said the proposed deal was a potential security risk which could impair a smooth and quick transition to 5G for the US.
In a Presidential Order the President said that the deal would impair national security. This is the first time a current US president has halted a deal over national security concerns before the deal was even agreed.
This decision ends Broadcom's four month, $117 billion bid to buy Qualcomm which would have been the largest technology industry deal in history.
Singapore became Broadcom's legal home when it was purchased two years ago, however the company maintains its physical headquarters in San Jose, just 740km from Qualcomm's headquarters in San Diego.
DTG Staff | 13.03.2018