Broadcom abandoned the acquisition of Qualcomm after the US government objected, and the company will issue a statement on Wednesday.
Broadcom offered $117 billion to acquire Qualcomm. For consideration of national security, US President Trump vetoed the transaction. The order stated that any Qualcomm and Broadcom prohibition "essentially equates to" plans for mergers and acquisitions transactions. In addition, all 15 board candidates nominated by Broadcom are not eligible for Qualcomm's board of directors.
Until now, Qualcomm still refuses Broadcom’s offer to acquire the company. The Foreign Investment Committee (CFIUS) subordinate to the US Treasury Department is investigating this merger.
The U.S. Department of the Treasury wrote to Broadcom on Sunday that Broadcom failed to provide sufficient information to the National Security Council about the company’s plan to re-register its headquarters in the United States, in violation of the U.S. Treasury’s directive.
On Monday, Trump signed an order to stop possible transactions. Once Broadcom acquires Qualcomm, it may become the largest technology transaction ever; Trump’s reason to block transactions is mainly concerned that Singaporean companies may acquire Qualcomm. It will weaken the U.S. advantage in the field of mobile technology and it may also be surpassed by China. If the acquisition is successful, the combined company will become the third largest semiconductor company in the world, occupying a leading market share in the fields of smart phones, automotive electronics, and industrial Internet devices.