Broadcom confirms it has withdrawn its Qualcomm bid

US President Donald Trump

Broadcom chief Hock Tan is unlikely to slow his acquisition spree after US President Donald Trump blocked the microchip maker's $117bn (€94bn) bid for Qualcomm on national security grounds, analysts have said.

Intel was previously said to have pondered intervening in the deal if it went through by bidding for Qualcomm but it's now unlikely to make any moves even if it wouldn't be subjected to the same level of regulatory scrutiny as Broadcom was by virtue of the fact that it's an American company.

Beijing has already come down hard on Qualcomm, fining it $975 million in 2015 for what it called anti-competitive practices.

If a hostile takeover to which Broadcom was willing to spend us $ 117 billion, took place, it would be the largest deal in the entire history of the high-tech industry, writes Ars Technica.

However, a recent USA presidential order blocked the acquisition of Qualcomm by Broadcom, setting up the biggest possible road block in Broadcom's plans. That's probably a mergers-from-hell kind of scenario for competitors, including Samsung and Huawei, both when it comes to 5G networking technology but also other chip tech that's now in use in all sorts of smartphones and connected devices.

Broadcom said in a statement that it "strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns".

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Being based in the United States as opposed to Singapore will allow Broadcom to make what it believes will be acquisitions of USA companies that will not fall within the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes deals for potential national security concerns. In its announcement, Broadcom says it still doesn't agree with the presidential order's particulars, but that it will "comply with the order". "Although Broadcom is based in Singapore, Chinese companies such as Huawei and ZTE have emerged as strong competitors in the race towards 5G".

The administration did not detail its national security concerns, but CFIUS last week sent a letter to the attorneys of the two companies saying it was concerned research and development at Qualcomm might atrophy under Broadcom's direction, according to a copy that was reviewed by The Washington Post.

Broadcom began pursuing Qualcomm more than a year ago, and in November made its official offer.

Lewis said it was possible U.S. intelligence found something to warrant concern over the deal even as Broadcom was taking steps to redomicile in the United States by April 3, which would negate a CFIUS investigation.

Broadcom had repeatedly tried to persuade US officials that it didn't pose a threat.

Broadcom continued to insist on an acquisition and had planned to replace much of Qualcomm's board in a bid to sway the decisionmaking process.

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