Broadcom offers to buy Qualcomm for $130 billion

Broadcom has proposed to buy Qualcomm in a semiconductor deal that would be worth $130 billion. It would be the largest tech takeover ever.

In a statement Monday, Broadcom said it offered Qualcomm shareholders $60 in cash and $10 per share in Broadcom shares. The offer represents a 28% premium to Qualcomm's closing price on Thursday, before initial reports of deal talks.

"Our proposal provides Qualcomm stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company," said Hock Tan, Broadcom's CEO, in a statement.

"This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products," Tan said. "We would not make this offer if we were not confident that our common global customers would embrace the proposed combination."

Tan was at the White House with President Donald Trump last Thursday to announce the company's relocation to the US. This move means Qualcomm can bypass the Committee on Foreign Investment (CFIUS), the body that regulates foreign investments in US-based companies.

But a merger between the fourth and sixth-largest semiconductor companies would still be scrutinized by the Department of Justice for antitrust concerns.

More to come, refresh this page for updates.