US President Donald Trump blocked the potentially-$117 billion Broadcom-Qualcomm merger through an executive order. The White House considered damning observations by the Committee on Foreign Investment in the United States (CFIUS), which had been studying potential national security implications of this merger. "There is credible evidence that leads me to believe that Broadcom Ltd. [by acquiring Qualcomm] might take action that threatens to impair the national security of the United States," wrote President Trump in the order.
Broadcom expressed shock and disbelief over the order. The company, in a statement, said that it "strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns." Qualcomm, meanwhile, battened down the hatches for any press comments. The American chipmaker had been wrestling with an increasingly Broadcom-slanted board that was all but ready to sell the company to Broadcom at an undervalued price. According to data compiled by Bloomberg, the Trump administration has shot down ten similar deals since it came to power, in which foreign companies - overwhelmingly Chinese in national origin - had attempted buy out American high-technology firms. Californian Intel is still in the foray to counter Broadcom, as CFIUS doesn't concern itself with American companies buying out foreign firms.