President Donald Trump killed Broadcom proposed buyout of Qualcomm citing national security concerns, according to a statement issued by the White House on Monday.
“There is credible evidence that leads me to believe that Broadcom Limited, a limited company organized under the laws of Singapore (Broadcom)…through exercising control of Qualcomm Incorporated (Qualcomm), a Delaware corporation, might take action that threatens to impair the national security of the United States,” the statement said.
Both companies were ordered to immediately abandon the proposed deal. The order also prohibits all 15 of Broadcom’s proposed candidates for Qualcomm’s board from standing for election.
The U.S. Treasury’s Committee on Foreign Investment in the United States had already expressed concerns about the transaction in a March 5 letter addressed to Broadcom and Qualcomm lawyers. CFIUS listed several issues, including Broadcom’s reputation for cutting research spending and potential national security risks.