Citing national security concerns, White House prohibits proposed deal between Broadcom and Qualcomm; prevents board election.
St. Louis, MO: Late Monday night, President Donald Trump issued a rare order to halt the looming hostile takeover of U.S. tech leader Qualcomm by Singapore-based Broadcom. This order comes on the heels of the U.S. Treasury's Committee on Foreign Investment in the United States announcing last week that they had several concerns about this merger due to Qualcomm's government contracts.
"We commend President Trump for protecting national security and American industry," said Ed Martin, President of Phyllis Schlafly Eagles. "This hostile takeover of the board of Qualcomm posed a critical threat to our national interests. A Broadcom takeover would have prevented Qualcomm from establishing U.S. leadership and dominance in setting the standards for the 5G network.
"Broadcom would have stepped aside and allowed China's Huawei to establish global leadership in 5G, a move that would put global communications at risk. This would also have been a disastrous blow not only to American technology leadership but also to American industry and workers.
Phyllis Schlafly Eagles responded last week to the Broadcom – Qualcomm merger, calling for a halt to this rushed Qualcomm board meeting. We are happy to see the White House acting quickly in the best interest of our nation's security, American jobs, and our position of leadership in the technological world.
The text of President Trump's order can be found here.