The back-and-forth dealing between Broadcom and Qualcomm is now over, as the White House has effectively barred the deal from happening. President Donald Trump has blocked the intended merger, saying that the new company may threaten the national security of the United States.
A statement made by the highest office in US says that “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.”
This is a blow to Broadcom as it was reported to be in the final stages of moving its headquarters from Singapore to the US to facilitate the merger. If the merger had gone through, it would have created one of the biggest (if not the biggest) chip manufacturer in the world. The deal was so big that even Intel was eyeing the final outcome of the purchase.
It can be argued that the failure is a good sign for the industry, as consolidation would have spelled less competition for the market. Now we will have to wait and see what is the outcome of this drama for the tech industry.
(Source: CNBC)
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