Qualcomm takeover a national security risk, says US

Qualcomm takeover bid halted by US government

Qualcomm takeover bid halted by US government

Qualcomm's sale to Singapore-based Broadcom could hurt the chipmaker's competitiveness by reducing research and development, which would threaten US security, Treasury said in a March 5 letter released by Qualcomm Tuesday.

The inter-agency body, led by the Treasury, rarely looks at mergers before firms have clinched an agreement, highlighting the urgency of United States concerns about safeguarding semiconductor technology and casting doubt on the deal's success.

Senior U.S. Treasury official Aimen N. Mir also said in a letter to the companies dated March 5 and released by Qualcomm the following day that the CFIUS was concerned about risks associated with Broadcom's relationships with third party foreign entities.

It now appears the government Committee on Foreign Investment in the United States will review the proposed takeover.

It said: "Broadcom's only correspondence with CFIUS was in response to CFIUS inquiries about Broadcom's nomination of directors to the Qualcomm board of directors, and such requests did not reveal that Qualcomm filed to initiate the CFIUS review on 29 January 2018".

Qualcomm is one of the leading players in the build-up to 5G networks (in partnership with Nokia), Huawei is the main competitor. Broadcom is also looking to become a US company registered in business friendly DE, before the stockholder vote.

John Cena vs AJ Styles in the main event
Last Sunday, RAW superstars battled it out inside the Elimination Chamber match to earn a spot at the grandest stage of them all. Meltzer also noted that Cena's promo on RAW was to divert attention away from the possible dream match with The Undertaker .

The U.S. "has identified potential national security concerns that warrant a full investigation of the proposed transaction", Treasury said.

Broadcom still is moving ahead, and the company believes it can work things out with the CFIUS in time for Qualcomm stockholders to vote for a new Board run by Broadcom. Ordinarily, it only weighs in after a deal is agreed upon - and can recommend that the president block any deal it considers a threat.

Qualcomm management has repeatedly said it's being undervalued by Broadcom - adding that any deal could be rejected by the government on antitrust grounds.

But Qualcomm, in a press statement, said "Broadcom's claims that the CFIUS inquiry was a surprise to them has no basis in fact" and that Broadcom had been interacting with CFIUS "for weeks".

Qualcomm took a deep breath, counted to three and responded to Broadcom's weekend broadside before postponing its stockholder meeting by a month. Currently, Broadcom is part of Broadcom Limited located in Singapore.

Recommended News

  • Walmart to offer prepared meals at its stores

    Walmart to offer prepared meals at its stores

    Another, which requires a little more work, is meant to be paired with Walmart's rotisserie chicken. Walmart, based in Bentonville, Arkansas, has continued its battle with Amazon for shoppers.
    Merkel finally gets a coalition

    Merkel finally gets a coalition

    But he added: "It's clear we don't want things to get worse, and we certainly don't want anything like a trade war". In her most recent government statement on European policy last week, she said, "We need a new start for Europe".
    Amazon, fearing competition, won't sell Nest products anymore

    Amazon, fearing competition, won't sell Nest products anymore

    The company also just purchased the video doorbell company Ring , for $1 billion to expand on its smart home line of products. As a result, those Nest products that are now listed on Amazon are expected to be removed once their stocks run out.
  • West Brom bust-up should be 'music to fans' ears' - Pardew

    West Brom bust-up should be 'music to fans' ears' - Pardew

    Despite some late West Brom pressure, Watford held on to claim three points that all but confirm their Premier League survival. Following the visit of the Baggies, Watford head to Arsenal and then play Liverpool.
    Blitzboks Drawn With NZ for Canada Sevens

    Blitzboks Drawn With NZ for Canada Sevens

    Argentina had made the final after beating Kenya 17-12 in the quarters and series leaders South Africa 12-10 in the semis. We don't only measure ourselves on the results, but also the way we play.
    Florida lawmakers take up school-safety bill in rare session

    Florida lawmakers take up school-safety bill in rare session

    Classes are scheduled to resume at Stoneman Douglas on Wednesday with half-day sessions for the rest of the week. One of the Marjory Stoneman Douglas teen activists expressed his disappointment about the measure's failure.
  • Senate Appropriations Committee chairman to resign

    Senate Appropriations Committee chairman to resign

    Senate seats on the ballot this year. "It'll be exciting to see who is actually going to be appointed to that position". McDaniel battle was he going to resign earlier, allowing McDaniel to take that seat?" "The control of the U.S.
    Russian Federation  slams 'illegal' extended U.S.  sanctions

    Russian Federation slams 'illegal' extended U.S. sanctions

    It was only in 2017 when the Russian authorities suppressed activities of 72 officers and 397 agents of foreign special services. Russia's new Sarmat intercontinental missile can take an arbitrary path to its target and circumnavigate any enemy defences.
    Barcelona Boss looking for a

    Barcelona Boss looking for a "Juicy" win against Atletico Madrid

    Atletico have kept the La Liga title race close by winning six straight games and picking up 25 points in their last nine games. Nelson Semedo is set to miss the visit of Atletico after suffering a hamstring injury against Girona.
  • Pak Bans Anushka Sharma's Horror Flick Pari for 'Promoting Black Magic'

    Pak Bans Anushka Sharma's Horror Flick Pari for 'Promoting Black Magic'

    Anushka Sharma has scared the fans after being loved as a friendly spirit in her previous film Phillauri . While the promos got good response from the viewers, the movie hasn't been well received by the audience.
    Scott McTominay: Man Utd midfielder's Scotland pledge a 'great coup' - Darren Fletcher

    Scott McTominay: Man Utd midfielder's Scotland pledge a 'great coup' - Darren Fletcher

    Scott McTominay has been accused of electing to represent Scotland instead of England because he "wants his summers off". He made his senior debut against Arsenal in May and has played 17 games, including starting the past three.
    At joke-filled dinner, Trump suggests United States  will meet with North Korea

    At joke-filled dinner, Trump suggests United States will meet with North Korea

    Trump brought up his recent calls for tariffs on steel and aluminium, which have been criticized by USA trading partners. The comments came during Trump's speech at the Renaissance Washington Hotel, at an event that he skipped past year .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.