“President Donald Trump issued an executive order Monday blocking Broadcom Ltd. from pursuing its hostile takeover of Qualcomm Inc., scuttling a $117 billion deal that had been scrutinized by a secretive panel over the tie-up’s threat to U.S. national security,” David McLaughlin reports for Bloomberg. “Trump acted on a recommendation by the Committee on Foreign Investment in the U.S., which reviews acquisitions of American firms by foreign investors.”

“The decision was unveiled just hours after Hock Tan, the chief executive officer of Singapore-based Broadcom, met with officials at the Pentagon in a last-ditch effort to salvage what would have been the biggest technology deal in history,” McLaughlin reports. “‘There is credible evidence that leads me to believe that Broadcom Ltd.,’ by acquiring Qualcomm, ‘might take action that threatens to impair the national security of the United States,’ Trump said in the order released Monday evening in Washington.”

“The order underscores the tough stance the Trump administration is taking on foreign takeovers of U.S. technology firms. In September, he blocked the sale of Lattice Semiconductor Corp. to a Chinese-backed investor,” McLaughlin reports. “The order underscores the tough stance the Trump administration is taking on foreign takeovers of U.S. technology firms. In September, he blocked the sale of Lattice Semiconductor Corp. to a Chinese-backed investor. That was just the fourth time in a quarter century that a U.S. president stopped a foreign takeover of an American firm on national security grounds. At least a half-dozen technology deals have collapsed during the Trump administration in the face of concerns raised by CFIUS.”

“Trump’s order came as Broadcom was in the midst of moving its headquarters from Singapore to the U.S. Broadcom had announced the move in November after Tan met with Trump at the White House,” McLaughlin reports. “After the meeting, CFIUS approved Broadcom’s takeover of Brocade Communications Systems, conditioned on the headquarters move, according to Broadcom.”

Read more in the full article here.

MacDailyNews Take: Intel’s prayers have been answered.

Intel should be praying that the U.S. government scuttles the Broadcom-Qualcomm merger so they don’t have to try to buy and attempt to integrate Broadcom and that Apple’s Qualcomm dispute goes on for years, so that Intel can at least have time to figure out how to finally make decent modems for iPhones. — MacDailyNews, March 12, 2018

SEE ALSO:
After blowing it on iPhone, Intel exploring a bid for Broadcom to derail potential Broadcom-Qualcomm merger – March 12, 2018
U.S. security panel deals major blow to Broadcom’s bid for Qualcomm – March 6, 2018
EU fines chipmaker Qualcomm $1.2 billion for paying Apple to shut out rivals’ chips – January 24, 2018
Apple countersues Qualcomm for patent infringement – November 29, 2017
Apple designing next-gen iPhones, iPads that would dump Qualcomm components – October 31, 2017
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Qualcomm files lawsuits seeking China iPhone ban, escalating Apple legal fight – October 13, 2017
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Apple faces down Qualcomm, Ericsson over EU patent fees – October 2, 2017
Qualcomm loses two key rulings in its patent royalty fight with Apple – September 21, 2017
Apple’s A11 Bionic obliterates top chips from Qualcomm, Samsung and Huawei – September 18, 2017
U.S. judge rules Apple lawsuits against Qualcomm can proceed – September 8, 2017
Qualcomm CEO expects out of court settlement with Apple – July 18, 2017
Apple-Qualcomm legal dispute likely to be ‘long and ugly’ – July 7, 2017
Qualcomm wants court to block Apple from U.S. iPhone imports and sales – July 6, 2017
Judge rules U.S. FTC antitrust lawsuit against Qualcomm to proceed – June 27, 2017
Apple uses Supreme Court decision to escalate war against Qualcomm – June 20, 2017
Apple’s amended San Diego complaint against Qualcomm leaves no doubt: many billions at stake – June 20, 2017
Apple rejects Qualcomm’s allegation of throttling iPhones, says ‘study’ is ‘methodologically unsound’ – June 20, 2017
Apple just poached one of Qualcomm’s top guys – May 31, 2017