It seems the largest IT deal in the history between Broadcom and Qualcomm still does not will, and point in This issue was not who other than US President Donald Trump.
Trump, having taken in attention to the recommendations of the foreign investment in US, signed a decree banning the absorption of American Qualcomm Singapore rival Broadcom. " The proposed acquisition of Qualcomm by the buyer is prohibited, as any other similar merger, acquisition and connection, directly or indirectly. Buyer and Qualcomm must immediately and give up forever expected absorption. Immediately after the commission of actions aimed at termination of operations for acquisition of Qualcomm, the buyer and Qualcomm must notify the United States foreign investment " - it says in presidential decree, which was promulgated by the White House.
In addition, Trump rejected all 15 candidates that Broadcom nominated the Board of Directors of Qualcomm, trying to achieve absorption through the " black entrance. "
Donald Trump explained his decision with concern about national security of the USA. The thing is That Qualcomm is now the largest in world manufacturer of chips for mobile devices. After absorption, Broadcom received on the control and could become one of the largest companies in semiconductor market after Intel and Samsung. There were also fears that the US would not can become a leader in the development of wireless technology 5G, losing first place to its closest competitor - To China.
As it turned out, the American leader does not reassured even the promises of Broadcom executives to move the headquarters from Singapore in USA.
Let's remind, Broadcom already some times did Qualcomm offers about purchase, starting with $ 130 billions and at eventually lowering this number to $ 117 billion . Every time in Qualcomm responded with a refusal, considering the voiced sums to be understated. Some time ago, information was that Qualcomm agreed to deal, but on their terms : Broadcom had to pay $ 160 billion. If the transaction took place, it became be the largest in history of the IT industry .
GBI Insight analyst Dan Ives said that theoretically Broadcom could challenge Trump's decision, but almost his decree destroyed all chances of deal.
Source: White House , Business Insider