Donald Trump Stops Qualcomm Takeover Bid of Broadcom

By Gage Skidmore via Wikimedia Commons

On Monday, Donald Trump, the President of the United States of America issued an order that is prohibiting the proposed takeover of Broadcom Ltd of Qualcomm Inc. on the grounds of national security.

Qualcomm had rebuffed the takeover offer of Broadcom amounting to $117 billion (84.15 billion pounds), which is currently under investigation by the U.S. Committee on Foreign Investment in the United States (CFIUS), a multi-agency panel that is led by the Treasury Department of the United States that reviews national security implications when foreign entities take over corporations in the United States of America.

The presidential order that was released by the White House on Monday said: “The proposed takeover of Qualcomm by the Purchaser (Broadcom) is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether affected directly or indirectly, is also prohibited.”

The said order cited “credible evidence” that resulted to the belief of President Donald Trump that Broadcom taking control of Qualcomm “might take action that threatens to impair the national security of the United States.”