After months of speculation and negotiating, Broadcom and Qualcomm had seemingly come to an agreement on a long bidding war with the former bidding $117 billion for the latter. The deal looked to be the largest transaction of this type in the tech world, bringing the two semiconductor companies together at an exorbitant price. However, the whole affair came to an abrupt end as the U.S. President Donald Trump prohibited the sale altogether.
The U.S. Treasury Committee on Foreign Investment (CFIUS) recommended Trump to intervene before the Broadcom-Qualcomm deal could come to fruition. In a statement from the White House, Trump stated that this proposed takeover could lead to Broadcom taking “action that threatens to impair the national security of the United States,” citing that Broadcom Limited is organized under Singaporean laws.
This comes after Qualcomm initially rebuffed Broadcom’s initial buying offer of $130 billion. Qualcomm thought the proposal “dramatically undervalued Qualcomm and came with significant regulatory uncertainty.” However, it now looks like, regardless of the offer, the two companies will be unable to merge in the foreseeable future.