Broadcom exits bid for Qualcomm

Source: Xinhua | 2018-03-15

SINGAPORE-BASED Broadcom Ltd withdrew its US$117 billion bid to acquire Qualcomm Inc on Wednesday, two days after US President Donald Trump blocked the attempt citing national security concerns.

The company said it has also withdrawn its slate of independent director nominees for Qualcomm’s annual shareholder meeting.

Broadcom, however, expects to continue with its plan to redomicile to the United States.

“Although we are disappointed with this outcome, Broadcom will comply with the order,” the chipmaker said.

Broadcom’s board met late on Tuesday to formalize plans to move its base to the US, at a cost of about US$500 million a year under a higher tax rate, the sources said.

Being based in the US as opposed to Singapore should make it easier for Broadcom to make acquisitions of US companies without falling under the jurisdiction of the Committee on Foreign Investment in the United States.