“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
Qualcomm faces long odds in attempt to get ban of iPhone sales and manufacturing in China – October 17, 2017
Qualcomm files lawsuits seeking China iPhone ban, escalating Apple legal fight – October 13, 2017
Qualcomm fined record $773 million in Taiwan antitrust probe – October 11, 2017
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
America First…always.
Amerika* First
*Those who can pay big
Yes, well done …
Bad headline. Singapore is not in China.
Singapore does have Chinese people in it, and Asian people of various Asian backgrounds, and Indians, and Singaporeans, and English and etc.
I’m cynical though because that’s my thing. I mean, I used to be indecisive but now I’m not so sure.
“Singapore does have Chinese people in it, and Asian people of various Asian backgrounds, and Indians, and Singaporeans, and English and etc.”
So does America, but no one is going around calling America China.
The real applecynic agrees with you.
not me….
I am a cynic and under-educated, otherwise, I would know enough grammar to have correctly typed “Not I,” capitalizing the “i” and not using “me.”
Ain’t you cute. Yew talk good to.
Still not me!
Moving the headquarters to the U.S. is not the same as making the company a U.S. company.
CFIUS is absolutely not “a secretive panel”. Some of its meetings are classified for obvious reasons, but anyone who has dealt with foreign investment in the U.S. knows about it, or should. They they know the ground rules.
Foreign investment is very different than foreign control or outright buyout, but CFIUS does review any significant buy in of a U.S. company, but they don’t worry about a 5% investment unless it comes with some level of control.
In general I am very much against protectionism, but unless Broadcom becomes a true U.S. company based in the U.S. I am in favor of the U.S. Government blocking this deal.
Capitalist free, nearly unfettered trade is not good for the commons.
That was a wise decision by the President. There is too much foreign leverage concerning American technology and we need to stop selling out!
Yep, if the Russians were buying Qualcomm you wouldn’t have heard a beep from Trump. Pass go and collect.
Like he did when Russia got that uranium deal?
Oh, wait….
Please, tell us all about it.
If I remember correctly, Russian company bought out a Canadian company. And because small part of that Canadian company controlled a small part of US uranium production capacity, nine (9) US government agencies were involved in reviewing and approving the deal, in addition to two non-federal entities. So, out of these eleven US entities that reviewed and approved the deal, one was US State Department. Curiously, none of the Republicans who had the power to object to this deal did that.
How this narrative translates into “Hillary Clinton sells US uranium to the Russians!” simply boggles the mind.
Probably because of monies the Clinton Foundation received because of these dealings.
“And shortly after the Russians announced their intention to acquire a majority stake in Uranium One, Mr. Clinton received $500,000 for a Moscow speech from a Russian investment bank with links to the Kremlin that was promoting Uranium One stock.
Frank Giustra, a mining financier, has donated $31.3 million to the foundation run by former President Bill Clinton.
At the time, both Rosatom and the United States government made promises intended to ease concerns about ceding control of the company’s assets to the Russians. Those promises have been repeatedly broken, records show.
The New York Times’s examination of the Uranium One deal is based on dozens of interviews, as well as a review of public records and securities filings in Canada, Russia and the United States. Some of the connections between Uranium One and the Clinton Foundation were unearthed by Peter Schweizer, a former fellow at the right-leaning Hoover Institution and author of the forthcoming book “Clinton Cash.” Mr. Schweizer provided a preview of material in the book to The Times, which scrutinized his information and built upon it with its own reporting.”
Excellent response. Unless I missed it, doubt you will hear back. Fair admission and exchange of facts damning his political team is simply not in his nature …
Doesn’t take much to boggle you lately Pre. The laundered money to buy this deal ended up in the Clinton Foundation to help get her elected, which is why everyone on the right who knows anything about the Clintons laugh constantly about this bullshit Russia collision.
You have two eyes, Predrag. For too long you have shut one to the possibility that you live in a liberal bubble and most of what you hear is very slanted.
http://www.arkansasonline.com/news/2018/jan/05/fbi-investigating-clinton-foundation-corruption-cl/
Now we’re talking about something else.
There is a lot of fishy stuff about that Clinton foundation, and knowing the Clinton political machine, there’s no doubt there was a lot of pay-for-play there.
Russians bought a Canadian company. Eleven US agencies reviewed the deal. Clinton likely never even knew about the transaction, as it never involved an American entity. This narrative is turned into “Clinton sells US uranium to the Russians”. This is a stretch, by any possible definition.
“knowing the Clinton political machine, there’s no doubt there was a lot of pay-for-play there.”
Naah, do you think? That’s it though, what? No paragraph after paragraph explanation of how Hillary was involved??? So just drop it and ignore it in the rest of your post, got it.
Not only that it gets WORSE. In the next graf you pulled a 180 and turned into a Clinton apologist, see here:
“Eleven US agencies reviewed the deal. Clinton likely never even knew about the transaction, as it never involved an American entity.”
Where are your facts she knew nothing? So as former Secretary of State she and her staff knew nothing of Russian deals? Glad to know the state department is on the ball along with other government agencies under Obama.
So are you next going to say she “likely never even knew” about hundreds of millions flowing into the Clinton Foundation and her husbands banking account from Russian sources?
So are you next going to say she “likely never even knew” basic government regulations in regard to handling classified e-mails?
So are you next going to say she “likely never even knew” about dozens of women and one intern we know of having affairs and sex with her husband for two decades?
She knew exactly what she was doing in all these incidents. As a lawyer she was establishing a fierce firewall to provide, protect and shield her from liability.
The Clintons are the epitome of an old axiom: knowledge without justice is cunning not wisdom.
Obvious, we may never hear any theories from you on how the Clintons “pay-for-play” works …
Please have a little respect for yourself.. and to babble bs .
Not entirely oblivious. There are times when The Trump happens upon sensible solutions. Obviously, this one fits well with his positive regard for USA IP, which is fine with me!
You’re fair, nice …
Derek thinks for himself.
Yes, both of you …🐎🌲🌱
The bankrupt and the debt-ridden US refusing to sell assets to it international creditors who hold its worthless bonds means the bond holders will get their pount of flesh some other way, perhaps forcefully.