President Donald Trump declared on Monday that the proposed $117 billion deal was prohibited on national security grounds. The president said in his order that “there is credible evidence” leading him to believe that Broadcom takeover of San Diego-based Qualcomm may threaten to impair the national security of the United States.
“There is credible evidence that leads me to believe that Broadcom Limited, a limited company organized under the laws of Singapore (Broadcom), along with its partners, subsidiaries, or affiliates, including Broadcom Corporation, a California corporation, and Broadcom Cayman L.P., a Cayman Islands limited partnership, and their partners, subsidiaries, or affiliates (together, the Purchaser), through exercising control of Qualcomm Incorporated (Qualcomm), a Delaware corporation, might take action that threatens to impair the national security of the United States.”
Top US officials recently expressed concerns that the takeover could cause the United States to fall behind China in the race to develop 5G networks. Broadcom issued a statement on Monday that it “strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns.”
If the deal would have gone through it would have been the largest technology deal in history. President Trump has shown that he is ready to protect American companies from foreign competition!