President Donald Trump issued an order on Monday that prohibits Broadcom from potentially taking over Qualcomm and has cited his reasons as national security.
The president has prohibited what would have been the biggest deal ever in tech history.
Broadcom has had a hostile $117 billion takeover offer for Qualcomm, which the latter company has shrugged off. The bid has been under investigation by a multi-agency panel led by the Treasury Department called the Committee on Foreign Investment in The U.S.
According to the President, there is “credible evidence” that if Broadcom were to acquire control of Qualcomm, it “might take action that threatens to impair the national security of the United States.”
Broadcom said it was reviewing Mr. Trump’s order and a spokesman has said, “Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns.”
According to the Treasury Secretary, Steven Mnuchin, the President’s order was based “on the facts and national security sensitivities related to this particular transaction only and is not intended to make any other statement about Broadcom or its employees, including its thousands of hard working and highly skilled U.S. employees.”
Disclaimer: We have no position in Broadcom Ltd (NASDAQ: AVGO) nor QUALCOMM, Inc. (NASDAQ: QCOM) and have not been compensated for this article.