Broadcom has rejected its plans to acquire Qualcomm after its offer was rebuked by US President Donald Trump. The company’s takeover plan would have been one of the largest acquisitions of all time, with Broadcom offering $117 billion in order to acquire Qualcomm.
Qualcomm has been rather resistant to the takeover attempts from Broadcom. It had previously signalled that it was willing to do a deal ‘for the right price’, but it seems that Broadcom wasn’t too keen on paying too much of a premium for the firm. That’s why Broadcom attempted a hostile takeover by unseating Qualcomm’s board with those sympathetic to the acquisition.
It seems that Broadcom’s plan didn’t quite anticipate interference from Trump himself. The US president has been bullish in his attempts to protect American industry, and Broadcom’s base in Singapore became a sticking point for Trump. It comes after Qualcomm tempted the US government into an investigation into the deal, with the Committee on Foreign Investment in the U.S. finding potential national security threats associated with the deal.
Broadcom could have still pursued its acquisition of Qualcomm, and it was reportedly looking into ways of getting around Trump’s interference. The company has already moved its headquarters to the United States, although it was said to be considering plans to redomicile in the US, which would have effectively sidestepped the latest ruling.
In a statement, the company noted that it was “disappointed by the outcome,” adding that it would drop its attempts to appoint nominees to Qualcomm’s board.
Does this mean Broadcom is abandoning any future attempt to acquire Qualcomm? Well, it’s not over quite yet. While for all intents and purposes Broadcom is saying that it’s the end, Broadcom still plans on moving forward with its redomiciliation process. That could potentially put it on a future collision course with Qualcomm; only time will tell.