In response, Broadcom said that it was reviewing the presidential order, but strongly disputed that its merger plans posed a threat to the United States. "These qualities have positioned Qualcomm as the current leading company in 5G technology development and standard setting". The Committee on Foreign Investment in the United States, or CFIUS, an interagency panel led by the Treasury Department, had several more weeks to render a recommendation to the president.
It now appears that Broadcom will have to cut its losses and has few, if any, avenues to pursing Qualcomm.
"There may be avenues for the companies to work together in other kinds of arrangements, but anything that looks like Broadcom controls Qualcomm, especially around the 5G business, CFIUS will be alert to", he says. "Having a well-known and trusted company hold the dominant role that Qualcomm does in the U.S. telecommunications infrastructure provides significant confidence in the integrity of such infrastructure as it relates to national security".
Chris Caso, an industry analyst with Raymond James, pointed out how brief the review of the deal was by U.S. Committee on Foreign Investment, and how rare it is for a U.S. president to intervene. "They would just have to buy Huawei (equipment)".
Just because Trump blocked Broadcom's plans doesn't automatically mean that the U.S. will have a lead over China when it comes to 5G. Qualcomm also owns patents on key pieces of mobile technology that Apple and other manufacturers use in their products. The reason for this is the desired acquisition of Qualcomm by the latter.
President Donald Trump will not let Broadcom proceed with a blockbuster hostile takeover of Qualcomm. Last week, the CFIUS issued an interim order to Qualcomm directing it to postpone its annual stockholders meeting and election of directors by 30 days.
United States aircraft carrier to make historic port call in Vietnam
Duterte has refused to implement a landmark 2016 global tribunal ruling in Manila's favour over its competing claims with Beijing. The port call will mark the largest US military presence in Vietnam since the nearly two decade-long war ended in 1975.
President Donald Trump has blocked the $117bn takeover of chip maker Qualcomm by Singapore-based Broadcom.
This is the second deal the U.S. president has blocked on national security grounds since taking office, following the $1.2bn sale of money transfer company Moneygram to China's Ant Financial, Alibaba's digital payments subsidiary.
"The proposed takeover of Qualcomm by the Purchaser (Broadcom) is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited", the Presidential order read. A Qualcomm-Broadcom deal could be the biggest technology sector takeover on record. He wrote that "the Trump edict essentially kills any chances of this deal happening and is a major gut punch to those Qualcomm bulls hoping this soap opera could end with a bid following pressure from the shareholder meeting, which is poised to happen next month after getting delayed". Broadcom moved to Singapore to save money on United States taxes.
"China is the dominant malicious actor in the Information Domain", said presentation prepared by a National Security Council official obtained by Axios in January.
In November, Broadcom promised to move its headquarters to the USA, prompting Trump to describe it as "one of the really great, great companies" and its CEO as a "highly, highly respected man, a great, great executive".