US national security review of Broadcom’s bid for Qualcomm a major blow
US officials are said to be concerned that Broadcom could sell part of Qualcomm to a Chinese firm, thus hurting the US’s efforts to develop 5G wireless tech
Washington — The US government has ordered a national security review of Singapore-based Broadcom’s $117bn bid for Qualcomm, in an unusual move that prompted Qualcomm to delay its March 6 shareholder meeting. The government action on Sunday highlighted growing US concerns about safeguarding semiconductor technology and cast a doubt on the deal’s success. The Committee on Foreign Investment in the US (CFIUS), which reviews deals for potential national security concerns, rarely reviews mergers before companies have clinched an agreement. CFIUS asked Qualcomm to postpone its shareholder meeting, scheduled for Tuesday, by 30 days. It was reported last week that CFIUS had begun looking at Broadcom’s bid as pressure grew from politicians, including senior Republican senator John Cornyn. "This measure will afford CFIUS the ability to investigate fully Broadcom’s proposed acquisition of Qualcomm," the US treasury department, which oversees CFIUS, said in a statement. Qualcomm said in a stat...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.