Trump halts Broadcom takeover of Qualcomm on security risks

(Mar 13): President Donald Trump issued an executive order Monday blocking Broadcom Ltd. from acquiring Qualcomm Inc., scuttling a US$117 billion ($153.9 billion) hostile takeover that had been subject of scrutiny over the deal’s threat to US national security.

Trump acted on a recommendation by the Committee on Foreign Investment in the US, which reviews acquisitions of American firms by foreign investors. The decision to block the deal was unveiled just hours after Hock Tan, the chief executive officer of Singapore-based Broadcom, met with officials at the Pentagon in a last-ditch effort to salvage the transaction.

"There is credible evidence that leads me to believe that Broadcom Ltd." by acquiring Qualcomm "might take action that threatens to impair the national security of the United States," Trump said in the order released Monday evening in Washington.

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