U.S. President Trump banned Broadcom from acquiring Qualcomm

According to NYTimes reports, U.S. President Trump issued an order Monday to ban the Singapore-based chip maker Broadcom from acquiring its American competitor Qualcomm on the grounds of national security.

Trump stated in a statement: “There is credible evidence that leads Broadcom, a company formed under the laws of Singapore, to exercise control over Qualcomm, which is based in Delaware, and may damage the United States action.”

Image: from the Wikimedia Commons

Both companies were ordered to immediately abandon the proposed deal. This order also banned Broadcom’s proposed Qualcomm board candidates from participating in the election, claiming that all 15 board candidates nominated by Broadcom did not qualify for the Qualcomm board of directors.

Prior to this, Qualcomm rejected Broadcom’s proposed $117 billion acquisition offer. The US Foreign Investment Commission (CFIUS) investigated the transaction and confirmed that the Singapore-based Broadcom acquisition of Qualcomm has a national security-related threat.