SAN DIEGO -- President Donald Trump has blocked Broadcom's hostile takeover attempt of San Diego's Qualcomm on the grounds that a deal "threatens to impair the national security of the United States."
In an order issued late Monday, Trump ordered Broadcom to withdraw its efforts to gain control of Qualcomm's board of directors.
The order came following Broadcom's moves to speed up the relocation of its corporate headquarters from Singapore to the U.S. -- which could have derailed the jurisdiction of the Committee for Foreign Investment in the U.S. to investigate the potential deal for national security risks.
Broadcom Chief Executive Hock Tan met earlier Monday with CFIUS officials to make its case to be allowed to pursue an acquisition of Qualcomm. But those talks failed to change the regulator's belief that the takeover posed a potential national security risk.
Broadcom's attempts to accelerate the relocation of its corporate headquarters from Singapore to the U.S. may have been a misstep in its efforts to ease CFIUS's concerns.
In a letter to both Qualcomm and Broadcom dated Sunday, the U.S. Committee for Foreign Investment in the U.S. (CFIUS) accused Broadcom on three separate occasions of failing to provide five business days notice of its efforts to accelerate relocation of its headquarters to the U.S.
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The multi-agency regulator said Broadcom's moves to relocate to the U.S. earlier than expected serve to shorten CFIUS's time to investigate.
So far, CFIUS said its probe confirms the national security risks of the Broadcom-Qualcomm deal. It expects to complete the investigation shortly and requested Broadcom provide any additional information as soon as possible.
"In the absence of information that changes CFIUS's assessment of the national security risks posed by this transaction, CFIUS would consider taking further action, including but not limited to referring the transaction to the President for decision," the letter said.
Broadcom Chief Executive Hock Tan and other Broadcom representatives were scheduled to meet with CFIUS officials on Monday, according to the letter.