Broadcom drops bid for Qualcomm after Trump's intervention

Broadcom's efforts to acquire Qualcomm emerged as one of last year's most controversial business moves in mobile tech.

Address Qualcomm rejected Broadcom offers and the Government of Trump ordered earlier this month at the California delay a meeting at which shareholders had been able to appoint new directors related to the operating company.

President Donald Trump ordered the Singapore-based company Broadcom to cease its attempts to buy the USA company Qualcomm, for which it had launched a hostile takeover of 117 billion dollars. The company additionally notes that it's backing down with its list of nominees for Qualcomm board positions-a move no longer needed with the buyout plans now canceled (and also one also explicitly banned by this week's order). While the president did not provide a detailed rationale, a March 5 letter from the Treasury Department calling for a review of the deal said that the administration was concerned about Broadcom's relationships with other foreign companies.

US Treasury Secretary Steven Mnuchin was quick to clarify the decision, stating Trump's order was strictly "based on the facts and national security sensitivities" related to the transaction and not meant to "make any other statement about Broadcom or its employees".

"Although we are disappointed with this outcome, Broadcom will comply with the order", the chipmaker said.

Singapore-based Broadcom said it will continue to move forward with its plans to shift its official headquarters back to the USA and will hold its special shareholder meeting as planned on March 23. Broadcom said in a statement regarding the order that the Singapore-based company "strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns". Today Broadcom acknowledges that development with word that it's withdrawn its Qualcomm offer.

Vanessa Coleman