Over the course of the last few months, Broadcom has been working to acquire Qualcomm, a process that has even seen the would-be acquired company turning down an offer of $130 billion because it was considered an undervaluation.
However, a recent U.S. presidential order blocked the acquisition of Qualcomm by Broadcom, setting up the biggest possible road block in Broadcom’s plans. The company initially intended on trying to change the order, saying that it did not agree with the U.S. government’s belief that U.S. national security was at risk if the acquisition was permitted, but it was short-lived.
Today Broadcom officially announced that it is ceasing its efforts to acquire Qualcomm. In its announcement, Broadcom says it still doesn’t agree with the presidential order’s particulars, but that it will “comply with the order”.
Here’s Broadcom’ statement on the matter:
“Although we are disappointed with this outcome, Broadcom will comply with 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, 2018.
Broadcom’s Board of Directors and management team sincerely appreciate the significant support we received from the Qualcomm and Broadcom stockholders throughout this process.
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.
Broadcom appreciates the following statement from U.S. Treasury Secretary and CFIUS chair Steven Mnuchin on March 12: ‘This decision is based on the facts and national security sensitivities related to this particular transaction only and is not intended to make any other statement about Broadcom or its employees, including its thousands of hard working and highly skilled U.S. employees.’“
So it looks like Qualcomm doesn’t have to concern itself with a potential acquisition anytime soon.