Broadcom pulls $142bn Qualcomm bid after Trump says No
Singapore company formally drops bid for 5G chipmaker after Trump veto
Broadcom’s bid to buy rival chipmaker Qualcomm ended today when the Singapore formally withdrew its $142 billion offer.
But US President Donald Trump effectively killed off the bid, which Qualcomm had opposed, yesterday with an executive order. Qualcomm is seen as a leader in making chips for future 5G mobile devices.
“[Broadcom] and Qualcomm shall immediately and permanently abandon the proposed takeover,” Trump said. “Immediately upon completion of all steps necessary to terminate the proposed takeover of Qualcomm, the purchaser and Qualcomm shall certify in writing to the Committee on Foreign Investment in the United States (CFIUS) that such termination has been effected in accordance with this order and that all steps necessary to fully and permanently abandon the proposed takeover of Qualcomm have been completed.”
He said the 15 individuals that Broadcom was putting forward as directors of Qualcomm “are hereby disqualified from standing for election as directors of Qualcomm. Qualcomm is prohibited from accepting the nomination of or votes for any of the candidates.”
He said that Broadcom and Qualcomm should certify “that such termination [of the bid] has been effected in accordance with this order and that all steps necessary to fully and permanently abandon the proposed takeover of Qualcomm have been completed.”
He had suggested that if Qualcomm was under the control of Broadcom that might threaten the security of the US. Broadcom said it would comply with the order, though it admitted disappointment.
Qualcomm has called a shareholders’ meeting for 23 March – ten days after Trump’s declaration.
Meanwhile Qualcomm is trying to buy Dutch chipmaker NXP for $44 billion – a deal that will require the approval of Chinese regulators, among others.
And Reuters is reporting today that the Trump administration is seeking to impose tariffs on technology imports into the US from China. The agency said these would total $60 billion, up from the $30 billion reported earlier – apparently the result of Trump’s decision that the lower figure was not enough.
The report has not yet been confirmed, nor has the range of Chinese-made technology products been divulged – though it is worth remembering that Apple’s iPhones are made in Chinese factories under contract.