Presidential order bans Broadcom’s proposed acquisition of Qualcomm
The Broadcom-Qualcomm deal is lifeless, forbidden by a presidential order. It’s a everlasting ban that forbids any future acquisition, merger or cope with related penalties. Broadcoms nominees for the Qualcomm board of administrators have been disqualified by the identical order.
The presidential order cites credible proof that the deal would possibly threaten nationwide safety. It doesn’t go into element, however the Committee on Overseas Funding within the US (CFIUS) stated that Qualcomms management in wi-fi patents for 5G are key to nationwide safety. If Qualcomm is impeded in its R&D, Chinese language firms will take the lead.
Qualcomm delayed the assembly of its shareholders by 30 days following the CFIUS inquiry. Nonetheless, it has now been ordered to carry the assembly as quickly as doable on March 23 after a 10-day discover interval.