Singapore chip maker tried to sweeten hostile Qualcomm bid with 5G promiseBusiness | 13 Mar 2018 9:02 pm
US President Donald Trump decided to squelch Broadcom’s bid for Qualcomm on the recommendation of the Committee on Foreign Investment in the United States, which reviews foreign purchases of U.S. entities.
The committee is chaired by US Treasury Secretary Steve Mnuchin.
Chipmaker Broadcom was founded by Americans. In 2016, it was acquired by Singapore's Avago Technologies.
The decision did not come as a surprise. Earlier this month, the committee branded the proposed deal a potential security risk that could hobble the U.S.’s ability to make the smooth and quick transition to 5G.
In an attempt to ease those worries, Singapore's Broadcom last week pledged to make the U.S. a leader in the race to build 5G networks, saying it would create a US$1.5 billion fund to support the effort if took control of Qualcomm.
Broadcom also tried to curry favor by moving its legal headquarters from Singapore to the U.S within the next few weeks.
Singapore became Broadcom’s legal home two years ago after it was sold to Avago, a company that once was part of Silicon Valley pioneer Hewlett-Packard.
Broadcom’s company’s physical headquarters is already in San Jose, California — about 450 miles from Qualcomm’s headquarters in San Diego.
Trump hosted Broadcom’s Tan in the White House last year when the executive announced the proposed move.
Now that Broadcom has been shoved aside, Qualcomm will be under pressure to prevent its stock price from sinking while trying to complete its own proposed takeover — a proposed $43 billion purchase of NXP Semiconductors.-AP/The Standard