Singapore based Broadcom Limited had plans to buy Qualcomm Inc. Its bid for the Qualcomm Inc was USD 117 billion. But, this proposal is now facing a rough weather.
The US government has asked the national security to investigate in depth this bid made by Broadcom Limited. This has taken everyone by surprise. The intervention of the US government has made Qualcomm delay the shareholding meeting scheduled for March 6th.
The government is not so sure about the success of this deal. It also wants to safeguard the semiconductor technology. This is why it has come out with such an action.
The deals that cause national security concerns are reviewed by the Committee on Foreign Investment in the United States (CFIUS). Normally, the CFIUS reviews the merger only after the companies have clinched the deal.
CFIUS has advised Qualcomm to postpone its shareholder’s meeting by 30 days. There was pressure growing from the politicians about the Broadcom’s bid on Qualcomm. This is what has got the CFIUS to act.
With the intervention by the US government, the CFIUS will be getting all the rights to investigate the Broadcom’s proposed acquisition of Qualcomm. The shareholders meeting of Qualcomm will now be held on April 5th.