Broadcom runs into the wall of Donald Trump in its attempt to take the hostile route to control rival Qualcomm, the largest manufacturer of processors for mobile devices.
The president of the United States issued an executive order blocking the maneuver of the technology giant based in Singapore.
This is to avoid the giant being in the hands of a foreign Asian company.
Trump justifies the blockade for the “threats” posed by the operation to national security, according to the statement made public by the White House two hours after the closure of Wall Street.
The two companies are required to desist immediately in the merger discussions, which have not yet come to fruition.
The operation is valued at 117,000 million dollars. To this amount we must add more than 25,000 million in debt.
The reaction of the White House is unusually quick and surprising.
A week before making his first offer, Hock Tan, CEO of Broadcom, announced that he was repatriating the company to the US at a ceremony in the Oval Office with Donald Trump.
Qualcomm made the first purchase attempt in November. But the CEO of Broadcom is known for its persistence and improved its offer in the following months, trying to win over investors.
The White House was forced a few days ago to postpone the general meeting of shareholders of the US semiconductor company to torpedo the maneuver.
Broadcom is, in parallel, in the process of establishing itself in San Diego precisely to avoid concerns about national security. But an operation of this magnitude also posed problems from the perspective of competition, by the concentration of the two giants.
Last week, it was speculated that Intel could take advantage of the offer to bid for Broadcom.
Benjamin Diaz started working for Debate Report in 2017. Ben grew up in a small town in northern Ontario. He studied chemistry in college, graduated, and married his wife a year later. Benhas been a proud Torontonian for the past 10 years. He covers politics and the economy. Previously he wrote for CTV News and the Huffington Post Canada.