Published: Thu, March 15, 2018
Business | By Kate Woods

Broadcom withdraws $121b bid for Qualcomm

Broadcom withdraws $121b bid for Qualcomm

Broadcom launched the hostile bid on Qualcomm in November a year ago at a price of $ 70 per share and in February raised the offer to $ 82.

Broadcom will withdraw its Qualcomm bid after US President Donald Trump blocked the transaction via executive order earlier this week.

Unsurprisingly, Broadcom expresses its disappointment with its inability to proceed, but nevertheless acquiesces to the order. "Broadcom will continue to move forward with its redomiciliation process and will hold its Special Meeting of Stockholders as planned on March 23", the company said in a statement.

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Broadcom's ambitions sparked United States government concerns over which country will dominate the technology, as well as fears over national security.

"Broadcom thanks the independent nominees who stood for election to the Qualcomm board, not only for their time and effort but also for their unwavering commitment to act in the best interests of Qualcomm stockholders", the company said.

"The proposed absorption of Qualcomm is prohibited, and any merger, acquisition or substantially similar absorption, whether direct or indirect, is also prohibited", Trump said in a presidential order.

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Had it gone through, the deal would have had an outsize impact on consumers around the world - the two companies supply the majority of chips used in smartphones, and Qualcomm in particular has a heavy stake in 5G, which promises dramatically faster wireless download speeds.

Broadcom's months-long attempt to takeover Qualcomm is officially over following yesterday's intervention by the White House.

Broadcom had planned to move its headquarters from Singapore to the USA on April 3, one month before the date it had announced as part of the agreement to buy Qualcomm.

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Wednesday's move is a formality since the presidential order issued Monday had ensured the deal would be killed in any U.S. regulatory review.

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