WASHINGTON – US President Donald Trump blocked on Monday Singaporean firm Broadcom’s bid to acquire US company Qualcomm for $117 billion, over national security concerns.
Trump said the operation, which would have been the largest in the technology sector, “threatens to impair the national security of the United States.”
“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,” Trump said in an executive order.
Broadcom had launched its takeover bid in November last year at a price of $70 per share, which raised it to $82 in February.
The Qualcomm management had rejected offers by Broadcom and the Trump government earlier this month and ordered the California-based company to delay a meeting in which the shareholders were set to name new executives.