The largest IT transaction is not to be: Trump blocked the purchase of Qualcomm by Broadcom

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.

What happened

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. "

Why denied

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 is ready to deal with Broadcom, but for $ 160 billion : 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