Based in Singapore, Broadcom past year made an unsolicited bid north of $100 billion to purchase Qualcomm.
The company's hostile takeover attempt came at a vulnerable time for Qualcomm, which has been embroiled in a long-running legal dispute with Apple and is facing several large fines from governing bodies across the globe, including a $1.23 billion fine recently levied against the company for breaking the European Union's antitrust laws.
President Donald Trump ordered the Singapore-based company Broadcom to cease its attempts to buy the U.S. company Qualcomm, for which it had launched a hostile takeover of 117 billion dollars.More news: WPI inflation eases to 2.48% in February
While this sure feels like a major setback for Broadcom's future plans, the company is still moving forward with another big change, as it reaffirms its intent to continue with redomiciliation plans, moving its headquarters back to the States. The company launched its unsolicited bid in November and was quickly and repeatedly rebuffed by Qualcomm's management and board.
An investigation of the deal by the Committee on Foreign Investment in the USA, which reviews purchases of American businesses by foreign investors, confirmed national security threats related to the acquisition by Broadcom, the Treasury Department said in a letter to both companies made public March 12.
Unsurprisingly, Broadcom expresses its disappointment with its inability to proceed, but nevertheless acquiesces to the order. Today Broadcom acknowledges that development with word that it's withdrawn its Qualcomm offer. While the president did not provide a detailed rationale, a March 5 letter from the Treasury Department calling for a review of the deal said that the administration was concerned about Broadcom's relationships with other foreign companies. According to voting return data seen by Bloomberg, Broadcom was on course to win control of the board that had been resisting its overture.