Broadcom has withdrawn its takeover bid for rival chipmaker Qualcomm after US President Donald Trump blocked the deal for reasons of national security. Trump issued an order to block the merger on Monday. The order states that there is "credible evidence" if Broadcom, based in Singapore, took control of Qualcomm based in the United States, the company "could take measures that threaten to harm the national security of the United States."
Broadcom said in a statement that it was disappointed with the result, but that it would comply. That marks a change from two days ago when Broadcom said it "does not agree that its proposed acquisition of Qualcomm raises national security concerns." Trump's order gave him little room to move, unless the company was willing to challenge the prohibition in court. . Bloomberg notes that the agreement had been investigated by the Foreign Investment Committee in the US. UU And it was determined to be a threat to national security if the acquisition was carried out, according to a letter from the Treasury Department to the two companies.
Broadcom initially made an unsolicited offer of $ 130 billion for Qualcomm in November 2017 and has been trying to take over Qualcomm for several months, but its offers have been repeatedly rejected. If it had been successful, the combined company would have been the third largest chip maker in the world.