Trump Blocks Takeover of Qualcomm on Security Grounds

The White House says Broadcom's takeover of the chipmaker would present a risk to national security
By Newser Editors and Wire Services
Posted Mar 12, 2018 7:30 PM CDT
Trump Blocks Takeover of Qualcomm on Security Grounds
Visitors look at a display booth for Qualcomm at the Global Mobile Internet Conference in Beijing   (AP Photo/Mark Schiefelbein, File)

President Donald Trump is blocking Singapore-based Broadcom's takeover of US chipmaker Qualcomm on national security grounds, the AP reports. The White House says Trump is taking the action on the recommendation of the Committee on Foreign Investment in the United States, which reviews foreign purchases of US entities. Broadcom made an unsolicited bid last year to take over Qualcomm, which has been met by shareholder skepticism and regulatory scrutiny on security and antitrust grounds. Broadcom is in the process of moving its legal headquarters from Singapore to the US, with the company planning on finishing the move by April 3, 2018. Trump hosted Broadcom CEO Hock E. Tan in the White House last year as he announced the move, and the company had hoped that would help it skirt the national security review. (More Qualcomm stories.)

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