Broadcom has been trying hard to acquire Qualcomm and it has already made multiple unsolicited bids for the company. While Qualcomm recently indicated that it had warmed up to the possibility, President Donald Trump has shot down Broadcom’s attempts to clinch a deal that would have resulted in it taking control of Qualcomm citing national security concerns. However, it seems that the company might be willing to fight the block.
President Donald Trump issued an order yesterday which essentially blocks any merger between Broadcom and Qualcomm. The order says that this step has been taken in the interest of national security and that there’s “credible evidence” which suggests that if Broadcom, a company that’s based in Singapore, takes control of Qualcomm it “might take action that threatens to impair the national security of the United States.”
Qualcomm was never really open to the idea of being acquired by Broadcom even though the latter has revised its bid multiple times and even tried to fill Qualcomm’s boards with members that viewed the merger favorably. However, with this order, not only can Broadcom not acquire or merge with Qualcomm but all of the people that it proposed for seats on Qualcomm’s board stand disqualified.
Broadcom isn’t going to let this go without a fight, though. The company is in the process of moving its headquarters from Singapore to the United States and plans to complete the process by April 3rd. It may then be in a position to fight Trump’s order in court which it seems willing to do. Broadcom has said in a statement that “US national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation.”