Broadcom, a company that manufactures semi-conductor chips, has indicated that it is planning to move back to the United States by April 3. This will be just a couple of days before Broadcom’s acquisition target Qualcomm will be holding its annual shareholder meeting. Broadcom had given an offer of $117 billion to acquire Qualcomm, which has been reviewed by the Committee on Foreign Investment in the United States (CFIUS) for any potential threats.
However, Broadcom indicated that these kinds of security concerns were not a big risk for the closure of the proposed buyout. Moreover, the buyout won’t be completed before the relocation of the company to the United States.
Broadcom is currently headquartered in Singapore and co-headquartered in San Jose, California. Broadcom stated that last week, CFIUS ordered the company to provide it with five business days’ notice before taking any action toward moving its base to the United States.
This requirement gave a clear indication that CFIUS was aware of its jurisdiction, and it could be contested if Broadcom moves back to the United States. CFIUS had pushed the annual shareholder meeting of Qualcomm to April 3.
After its initial bid of $103 billion for Qualcomm back in November, Broadcom has revised its bid on multiple occasions but has not yet struck a deal. Even before the first bid in November, President Trump had announced that Broadcom will relocate from Singapore to the United States.
