President Trump left semiconductor giant Broadcom little choice by citing national security concerns in his March 12 order prohibiting the proposed takeover of Qualcomm, but just in case it wasn’t crystal clear, the largest potential tech deal in history is now officially off the table.
Broadcom has formally “withdrawn and terminated” its offer to acquire San Diego-based Qualcomm Incorporated, following many months of tense negotiations, deadlines issued and reconsidered, as well as a failed hostile takeover attempt.
Formerly known as Avago Technologies, before purchasing Broadcom Corp. in early 2016, Broadcom Limited had promised to make the US “the global leader in 5G” to assuage government anxiety over allowing a foreign power to control a domestic semiconductor and telecommunications equipment innovator.
That obviously didn’t work, but Broadcom will “continue to move forward with its redomiciliation process”, expected to be completed by early April, when the company’s Singaporean registration will be fully transferred to the US.
It’s pretty obvious Broadcom still plans to significantly expand its American operations, likely looking to acquire smaller companies without requiring approval from the Committee on Foreign Investment in the United States (CFIUS).
At least for the time being, Qualcomm’s Board of Directors can probably breathe easy, as Broadcom is also withdrawing its slate of independent nominees for the former’s 2018 Annual Meeting of Stockholders, as ordered by the White House. No need for Intel to step in either.