President Trump Bars Broadcom’s Proposed Takeover of Qualcomm

14 March 2018
View Client Update
Key takeaways:
  • The Trump administration used CFIUS authority to prohibit Broadcom from acquiring Qualcomm; the prohibition applies irrespective of Broadcom’s proposed re-domestication to the United States.
  • CFIUS noted Broadcom’s “‘private equity’-style direction,” which it believes may reduce long-term R&D investment in favor of short-term profitability.
  • M&A principals and advisors should recalibrate their views of CFIUS risk in light of the increased willingness of the current administration to block transactions and the broad rationale given for the Broadcom order.