Trump Blocks Broadcom Takeover Of Qualcomm On National Security Concerns

(RTTNews) - The U.S. President Donald Trump issued an executive order Monday blocking Broadcom Ltd. (AVGO) from pursuing its hostile takeover of Qualcomm Inc., (QCOM) scuttling a $117 billion deal that had been scrutinized by a secretive panel over its threat to U.S. national security. Separately, Broadcom said it is reviewing the order, and that it strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns.

Trump acted on a recommendation by the Committee on Foreign Investment in the U.S., which reviews acquisitions of American firms by foreign investors. The decision was unveiled just hours after Hock Tan, the chief executive officer of Singapore-based Broadcom, met with officials at the Pentagon in a last-ditch effort to salvage what would have been the biggest technology deal in history.

"There is credible evidence that leads me to believe that Broadcom Ltd.," by acquiring Qualcomm, "might take action that threatens to impair the national security of the United States," Trump said in the order released Monday in Washington.