U.S. President Donald Trump issued an executive order March 12 barring Singapore-based Broadcom Ltd. from acquiring QUALCOMM Inc., citing national security concerns.
"The proposed takeover of Qualcomm by the Purchaser (Broadcom) is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited," the presidential order said.
The order cited "credible evidence" that Broadcom, by taking control of Qualcomm, "might take action that threatens to impair the national security of the United States."
The 15 individuals listed as Broadcom's candidates were also disqualified from standing for election as directors of Qualcomm. Qualcomm is also prohibited from accepting the nomination of or votes for any of the candidates.
The ban brings Broadcom's $117 billion takeover bid, said to be the biggest in the history of technology, to an immediate end, Bloomberg News reported.
Trump's March 12 order supersedes the interim order issued by the Committee on Foreign Investment in the U.S., or CFIUS, on March 4.
CFIUS, on March 4, ordered Qualcomm to postpone a shareholder meeting to vote on Broadcom's nominees to Qualcomm's board. The U.S. Treasury said Broadcom defied that order by not giving proper notice about moving its headquarters to the U.S., but Broadcom said it has been "fully transparent" with CFIUS.
