Broadcom Makes More Promises to Appease US Regulators
Broadcom today said it won't sell anything considered a "critical national security asset" to foreign buyers if its proposed purchase of Qualcomm is approved by U.S. regulators. Earlier this week, the Committee on Foreign Investment in the U.S. (CFIUS) said it would take 30 days to examine Broadcom's proposal. For the moment, Broadcom is based in Singapore and there are limits on what foreign companies can do when purchasing U.S. companies, particularly those that provide services to the government. However, Broadcom is in the process of repatriating to the U.S., which it claims will be complete by May. Broadcom further committed to investing $3 billion in research and $6 billion in manufacturing in the U.S. on an annual basis if its deal is approved. Qualcomm insists Broadcom's current offer undervalues the company. Moreover, the two have not yet come to terms on how Broadcom will handle Qualcomm's licensing business. Broadcom hoped Qualcomm shareholders would elect directors proposed by Broadcom at the company's annual shareholder meeting this week. That meeting was postponed to accommodate the CFIUS review. The process is now on hold while CFIUS conducts its investigation.
Broadcom Now Says It Will Be a US Company By April 3
Broadcom has accelerated its plans to repatriate to the United States. The company today said its efforts to redomicile should be completed by April 3, rather than May 6.
US Intervenes In Vote, Wants to Review Qualcomm-Broadcom Deal
The U.S. government ordered Qualcomm to cancel a vote scheduled for Tuesday to allow the government more time to review a potential merger between Qualcomm and Broadcom.
Broadcom Says It Will Invest $1.5B In US to Win Qualcomm
Looking to assuage fears in the U.S. government, Broadcom today committed to creating a $1.5 billion fund that it will use to invest in technology and engineers.
Trump Puts the Kibosh On Broadcom's Qualcomm Bid
President Trump today issued an order that prevents Broadcom from purchasing Qualcomm. Trump cited national security as his reason behind the order.
Qualcomm Says Broadcom's Overtures Not Striking Right Notes
Qualcomm today said Broadcom's acquisition offer simply isn't good enough as currently proposed. The companies met earlier this week to go over some of the finer points of Broadcom's $121 billion bid to purchase Qualcomm, and Qualcomm still came away leery that the deal won't work out.