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A CFIUS investigation has “confirmed the national security concerns” related to the potential acquisition
Singapore-based tech company Broadcom Limited is speeding up plans to relocate its headquarters to the U.S. so it can acquire Qualcomm, the only semiconductor manufacturer based in America, and is running into more trouble with the government, which has verified national security concerns in an investigation.
Broadcom - Restructure - Delaware - Corporation - Singapore
Broadcom says that it will complete a corporate restructure, which would make it a Delaware corporation rather than a Singapore company in a process known as “redomiciliation,” by April 3, but the U.S. government is fighting the process.
“Broadcom’s proposal to acquire Qualcomm has always been premised on the completion of Broadcom’s previously announced plan to redomicile,” the company said in a statement. The company is in the “final stages of redomiciling” and insists that “U.S. national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation.”
US - Government - Investigation - Security - Risks
The U.S. government, which is currently conducting an investigation into the national security risks involved with Broadcom’s attempt to purchase a critical U.S. chipmaker. The Committee on Foreign Investment in the United States (CFIUS) said it had “confirmed the national security concerns” in a letter from a senior official sent Sunday, which was obtained by The Daily Caller News Foundation.
The letter, sent to Qualcomm’s attorneys, says Broadcom violated CFIUS’ by not providing five-day notice on efforts to relocate in the U.S. on three different occasions. For several months, Broadcom’s plan was to complete its relocation to the U.S. by May 6. CFIUS required the notice as part of the interim order delivered March 4, days before the scheduled Qualcomm board meeting.
Had - Broadcom - US - Company - Takeover
Had Broadcom been a U.S. company, it’s possible that it could have completed a hostile takeover of Qualcomm, based in San Jose, Calif., without CFIUS getting...
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