The Broadcom-Qualcomm deal was being discussed for quite a long time. Even Intel seemed threatened with the deal and we have seen a clear impact on the shares market costing the America-based processor manufacturers a downfall of 1 percent.
Now according to the latest reports, the US President Donald Trump has blocked the Broadcom-Qualcomm merger deal which was estimated to have a worth of around $117 billion. President Trump passed an executive order to halt the deal as it was against the American rules of acquisition of international companies.
The Concerned Authorities
The Committee on Foreign Investment in the United States (CFIUS) had presented the White House with the national security implications of this merger, to whom Trump replied with this executive order:
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.
Broadcom’s Take On This
Broadcom is still in a shock as the company isn’t ready to accept these orders. Also, Qualcomm doesn’t seem happy with Trump’s decision and will pursue the case.
Trump has also canceled dozens of other merger deals through the power of his executive orders!