As we have already told you that Broadcomm has proposed acquisition of Qualcomm. Now President Trump Blocks Broadcom Takeover Bid for Qualcomm on Security Grounds. There were concerns the takeover could have led to China pulling ahead in the development of 5G wireless technology.
Trump Blocks Broadcom Takeover Bid for Qualcomm on Security Grounds
Mr. Trump said
“credible evidence” had led him to believe that if Singapore-based Broadcom were to acquire control of Qualcomm, it “might take action that threatens to impair the national security of the United States.”
Mr. Trump’s decision to prohibit the blockbuster deal underscored the lengths that he is willing to go to shelter American companies from foreign competition. In recent weeks, the president has turned to an arsenal of tools — including tariffs and an obscure government review panel — to ward off foreign control in American industries and, in particular, thwart the rise of China.
Broadcom said it was reviewing Mr. Trump’s order and disputed the notion that the bid posed a security threat. Moreover, in a statement to Trump’s reply, a company spokesman said.
“Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns,”
Let’s see what the company will do now. However, Qualcomm has not said anything about this order of Trump.
Source: The New York Times