Trump blocks Broadcom's $117 billion Qualcomm bid citing national security concerns

YEREVAN, MARCH 13, ARMENPRESS. The White House has blocked Broadcom's $117 billion bid for Qualcomm due to national security concerns, CNN reports.

In an order Monday, US President Donald Trump wrote that there is "credible evidence" that Broadcom and its affiliates "might take action that threatens to impair the national security of the United States."

He said the two companies must "immediately and permanently abandon the proposed takeover."

Broadcom's hostile takeover ofQualcomm— the latter companyrejected the bid— would have combined two computer chip makers. It had been under investigation by the Committee on Foreign Investment in the United States, or CFIUS.

CFIUS disclosed that it was looking at "the risks associated with Broadcom's relationships with third party foreign entities," as well as the "national security effects of Broadcom's business intentions with respect to Qualcomm," according to the memo, which was written by a Treasury Department official.

The letter said one big concern is that a takeover would cause the United States to fall behind on the development of 5G technology and allow China to take the lead. Qualcomm is known for inventing 2G and 3G wireless network technology, and it has been investing heavily in 5G research.

English –translator/editor: Stepan Kocharyan