The president issued an executive order blocking the acquisition on Monday.
- President Trump issued an executive order Monday blocking Broadcom's takeover of Qualcomm.
- Trump said there is "credible evidence" that Broadcom "might take action that threatens to impair the national security of the United States."
- Broadcom is based in Singapore, and Qualcomm is based in San Diego, California.
President Trump issued an executive order Monday blocking the impending takeover of Qualcomm by Broadcom Limited.
Broadcom, a chipmaker incorporated in Singapore, was looking to take over Qualcomm, a San Diego-based rival.
The Trump administration has previously blocked China-related deals, including the sale of Lattice Semiconductor to an investment group, and the acquisition of Moneygram by an Alibaba-affilifated company.
Here's the key part of President Trump's executive order:
There is credible evidence that leads me to believe that Broadcom Limited, a limited company organized under the laws of Singapore (Broadcom), along with its partners, subsidiaries, or affiliates, including Broadcom Corporation, a California corporation, and Broadcom Cayman L.P., a Cayman Islands limited partnership, and their partners, subsidiaries, or affiliates (together, the Purchaser), through exercising control of Qualcomm Incorporated (Qualcomm), a Delaware corporation, might take action that threatens to impair the national security of the United States;
...
On the basis of the findings set forth in section 1 of this order, considering the factors described in subsection 721(f) of the Defense Production Act of 1950, as appropriate, and pursuant to my authority under applicable law, including section 721, I hereby order that:
(a) The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited.
This story is developing...
The president issued an executive order blocking the acquisition on Monday. Read Full Story
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