On Monday, President Trump blocked a $117 billion Broadcom’s bid for the maker of chip “Qualcomm”, bringing up concerns for national security and sending a clear signal that Trump was willing to adopt extraordinary measures for promoting the increasingly protectionist stance of his administration. In a presidential order, the president Mr. Trump told that reliable evidence led him to accept that if the Singapore-based Broadcom were given control of the Qualcomm, it might take action, which threatens in impairing the United States’ national security. And if the acquisition had gone through, then it would be the largest technology deal made in the pages of history.
Decision by the President for forbidding the blockbuster agreement underscored the lengths and is willing to go for sheltering the Americans companies from the foreign competition. In the current weeks, the president seemed to get twirled to an arsenal of tools, along with tariffs and a vague panel containing government reviews, and it’s to ward off the foreign control over American industries, and to be precise, forestall the rise of China. Last week the National Security was also cited by the President after his approval on the sweeping tariffs and stiff on imported aluminum and steel, stating that those were a threat to the American manufacturing.
Under President Trump, various agreements involving the foreign buyers squelched across a review by the committee of foreign investment, along with the sale of MoneyGram for affiliation of the “Alibaba Group”, and the sale to the investment firm by the Lattice Semiconductor with reported links to the government of China. But the steps against Broadcom weren’t usual as the mergers are rarely killed before the shareholders of a publically traded company are given the opportunity for making a decision on the proposal for them.
At some point Broadcom during negotiation with the Qualcomm, even made up the proposal and offered the company for acquiring it. After the foreign committee made an announcement of its investigation into the bid for Qualcomm this month, Broadcom dashed plans in shifting its headquarters to the United States and forward a letter to the lawmakers giving words that it would delay the research process and development in 5G networking technology if the union were approved.
Carolyn is a technology graduate and loves to write about anything related to technology as well as writes in others sectors. Carolyn is a professional writer with over 7 years of experience. Initially starting off as a programmer, Carolyn decided to combine her knowledge about technology and writing and that’s how she joined Reporter Expert.