US security panel could stop Broadcom’s Qualcomm bid, says source
The rare pre-deal discussions by a powerful inter-agency panel suggest the Singapore-based chip maker has not done enough
Washington — A national security panel that can stop mergers that could harm US security has begun looking at Singapore-based chip maker Broadcom’s plan to take over rival Qualcomm, according to three sources familiar with the matter. CFIUS, an opaque inter-agency panel, has been in touch with at least one of the companies in the proposed merger, one source said, and met last month to discuss the potential merger of the two big semiconductor companies, according to two sources familiar with the matter. Senator John Cornyn, the No 2 Republican in the Senate, urged Treasury Secretary Steven Mnuchin on Monday to have the Committee on Foreign Investment in the US, or CFIUS, officially review the proposed transaction before a key shareholder vote expected on March 6, according to a letter seen by Reuters. The pre-deal discussions by CFIUS — which are extremely rare — suggest Broadcom’s plans to move its headquarters to the US before it completes its proposed purchase of Qualcomm may not ...
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