Broadcom announced on Wednesday that it has officially withdrawn its $117 billion bid to acquire Qualcomm. In a related move, Qualcomm also decided not to contest the board's composition any further, and Broadcom will no longer attempt to place its six nominated directors on Qualcomm’s board during the company’s next annual meeting.
Despite this setback, Broadcom has not changed its plan to relocate its headquarters from Singapore to the United States. The company’s decision to abandon the acquisition marks the end of its long-standing effort to take over Qualcomm.
The U.S. government, under President Trump, had previously issued an order blocking the deal on national security grounds. This move was seen as a major obstacle for Broadcom, despite its efforts to negotiate with both Qualcomm and the U.S. administration.
Although Broadcom made multiple attempts to secure the acquisition and accelerate the relocation process, the deal ultimately failed to gain approval. On Wednesday morning, Broadcom released a statement confirming the withdrawal of its offer, expressing disappointment but vowing to comply with the government’s restrictions.
In the statement, Broadcom emphasized its commitment to relocating its headquarters and mentioned that a special shareholders’ meeting will be held on March 23. The company also highlighted its continued interest in expanding through mergers and acquisitions, particularly in the semiconductor industry.
According to Bloomberg, the rejection of the Qualcomm acquisition by the U.S. government has left many stakeholders, including other U.S. companies, wondering about the future direction of both firms. Analysts suggest that while the deal is now off the table, Broadcom may still look for other targets to grow its market share.
Morningstar analyst Brian Colello noted that even though the $79-per-share offer is no longer active, it could still positively impact Qualcomm’s stock price. He also pointed out that Broadcom is likely to continue its search for new M&A opportunities in the chip sector.
Additionally, reports from the Wall Street Journal suggested that Intel might consider acquiring Broadcom, as the company was concerned about the competitive implications of a Broadcom-Qualcomm merger. However, with the deal now dead, Intel’s interest in Broadcom appears to have diminished significantly.
Colello added that the U.S. government’s actions regarding the Broadcom-Qualcomm deal have “cleaned up†the situation for Intel, potentially removing the need for the chipmaker to pursue Broadcom.
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