Broadcom takeover bid for Qualcomm stalled by US security committee

1520439748 broadcom takeover bid for qualcomm stalled by us security committee

There’s been but any other twist within the ongoing saga of Broadcom’s try to take over Qualcomm. Last we heard, Qualcomm had set an asking worth of $160 billion for the buyout after months of again–and–forth between the 2 tech giants, however now any imaginable deal can have utterly hit the rocks because of out of doors interference.

According to a CNBC file, the US Treasury Committee on Foreign Investment (CFIUS) has raised security issues over what may turn into the most important natural tech deal in historical past.

In a letter despatched to each Broadcom and Qualcomm attorneys, the CFIUS – a committee made up of representatives from quite a lot of US executive businesses – cited Broadcom’s popularity for analysis spending cuts and possible nationwide security dangers, with the latter fear targeted round Broadcom’s industry relationships with “foreign entities”.

Qualcomm has driven a a very powerful shareholder vote scheduled for March 6 again by 30 days on account of the nationwide security evaluation.

While the intervention may scupper the deal, Broadcom is it seems that nonetheless “optimistic” the CFIUS will approve any ultimate deal, in keeping with CNBC’s assets, and the Singapore-based company mentioned in a observation that it’s “fully cooperating” with the evaluation.

The timing of the CFIUS’ transfer has been highlighted by analysts as any other signal that the US executive is anxious in regards to the possible dominance of overseas silicon and telecoms firms as soon as the rollout of 5G era starts.

Perhaps as a way to keep away from a identical political backlash like the only just lately confronted by Chinese large Huawei, Broadcom introduced plans to transport its headquarters to the United States again in November final 12 months – simply days sooner than it submitted its first Qualcomm takeover bid.

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