Qualcomm has got a semiconductor deal worth nearly $130 billion from Broadcom. This is supposed to be the biggest takeover in the industry. According to the statement released by Broadcom, it has offered $60 in cash for Qualcomm shareholders along with $10 per share in Broadcom shares. This offer is having a 28 percent premium to the Qualcomm stock price as of Thursday.
The CEO of Broadcom, Hock Tan said that this proposal provides the shareholders of Qualcomm with immediate premium in valuation and they will also get an opportunity to see the combined growth of these two companies in the future.
He also added that the offer comes with a lot of confidence as the common customers of the companies around the globe will be more than willing to accept the proposal. He was at the White House along with Donald Trump to announce the relocation of the company to the US. This provides them with some relief with regards to foreign investment regulations in US-based companies.
However, the Department of Justice for antitrust concerns will scrutinize the merger between the two companies that hold the sixth and fourth largest positions in the ever-growing semiconductor sector.