Broadcom today said it won’t sell anything considered a “critical national security asset” to foreign buyers if its proposed purchase of Qualcomm is approved by U.S. regulators.
Earlier this week, the Committee on Foreign Investment in the U.S. (CFIUS) said it would take 30 days to examine Broadcom’s proposal. For the moment, Broadcom is based in Singapore and there are limits on what foreign companies can do when purchasing U.S. companies, particularly those that provide services to the government.
However, Broadcom is in the process of repatriating to the U.S., which it claims will be complete by May. Broadcom further committed to investing $3 billion in research and $6 billion in manufacturing in the U.S. on an annual basis if its deal is approved.
Qualcomm insists Broadcom’s current offer undervalues the company. Moreover, the two have not yet come to terms on how Broadcom will handle Qualcomm’s licensing business.
Broadcom hoped Qualcomm shareholders would elect directors proposed by Broadcom at the company’s annual shareholder meeting this week. That meeting was postponed to accommodate the CFIUS review. The process is now on hold while CFIUS conducts its investigation.
