Why Trump blocked Broadcom's $117-bn bid to buy Qualcomm?

The stock fell 3.11 points to 59.70. The agency further stated that the Defence Department in the United States relies on Qualcomm's products, based in San Diego.

Qualcomm's board repeatedly rejected the offer - saying it undervalued Qualcomm's growth prospects from cellular technology expanding into cars and gadgets beyond smartphones, the eventual end to its legal fight with Apple, its pending acquisition of NXP Semiconductors and the roll out of ultra-fast 5G mobile networks.

5G remains in the early stages of development.

The Committee on Foreign Investment (CFIUS) has said that it is anxious that Broadcom would slash research and development at Qualcomm. The amount changed a few times but settled at $79 per share per share.

The Treasury argued that Broadcom has a history of acquiring companies, and then slashing their spending on new technologies.

The decision to abandon the takeover bid for Qualcomm Inc. comes after the President of the United States, Donald Trump blocked the deal on the bases of national security.

"Reduction in Qualcomm's long-term technological competitiveness and influence in standard setting would significantly impact USA national security", CFIUS warned. In a letter dated 5 March 2018, the CFIUS declared that the deal "could pose a risk to the national security of the United States".

What's to stop Trump or the CFIUS from barring other companies from considering acquisitions from non-U.S. -based companies? While it has been headquartered in Singapore - from where it has been driven with some determination by its president and CEO Hock Tan - it recently announced that it would move its headquarters to the US.

In case you hadn't heard, Broadcom has been trying to purchase Qualcomm since late previous year, with Qualcomm resisting at every corner.

Jefferies Singapore analyst Edison Lee disagreed and said Broadcom's hostile takeover of Qualcomm has become hostage to politics.

Broadcom has confirmed that it will withdraw its offer to acquire rival chip company Qualcomm.

Broadcom's attempt at an unsolicited takeover ground to a halt earlier this week, when the Trump administration moved to block it from taking place.

Vanessa Coleman