President Trump blocks the Broadcom takeover of Qualcomm on national security grounds

Joshua Roberts/Reuters

President Donald Trump

• President Trump issued an executive order Monday blocking Broadcom's takeover of Qualcomm.
• Trump said there is "credible evidence" that Broadcom "might take action that threatens to impair the national security of the United States."
• Broadcom is based in Singapore, and Qualcomm is based in San Diego, California.

President Trump issued an executive order Monday blocking the impending takeover of Qualcomm by Broadcom Limited.

Broadcom, a chipmaker incorporated in Singapore, was looking to take over Qualcomm, a San Diego-based rival.

The Trump administration has previously blocked China-related deals, including the sale of Lattice Semiconductor to an investment group, and the acquisition of Moneygram by an Alibaba-affilifated company.

Here's the key part of President Trump's executive order:

There is credible evidence that leads me to believe that Broadcom Limited, a limited company organized under the laws of Singapore (Broadcom), along with its partners, subsidiaries, or affiliates, including Broadcom Corporation, a California corporation, and Broadcom Cayman L.P., a Cayman Islands limited partnership, and their partners, subsidiaries, or affiliates (together, the Purchaser), through exercising control of Qualcomm Incorporated (Qualcomm), a Delaware corporation, might take action that threatens to impair the national security of the United States;

...

On the basis of the findings set forth in section 1 of this order, considering the factors described in subsection 721(f) of the Defense Production Act of 1950, as appropriate, and pursuant to my authority under applicable law, including section 721, I hereby order that:

(a) The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited.

This story is developing...