Broadcom’s bid for Qualcomm is officially dead.
The company said Wednesday that it had withdrawn its $117 billion offer to buy Qualcomm two days after President Trump stopped the deal, citing national security concerns. Broadcom also pulled its proposed nominees to Qualcomm’s board of directors.
The deal would have combined two computer chip leaders.
On Monday, Trump issued a rare order blocking the deal in an attempt to curb China’s progress in the global technology race. Although Broadcom’s operating headquarters are in California, it reincorporated in Singapore in 2015.
Trump said there is “credible evidence” that Broadcom and its affiliates “might take action that threatens to impair the national security of the United States.” He said the two companies must “immediately and permanently abandon the proposed takeover.”
“Although we are disappointed with this outcome, Broadcom will comply with the [order],” the company said in a statement.
The hostile takeover — Qualcomm had rejected Broadcom’s offer — had been under investigation by the Committee on Foreign Investment in the United States, or CFIUS. The inter-agency panel, led by the Treasury Department, scrutinizes deals that could give foreign firms control of US companies.
CFIUS said one big concern is that the United States would fall behind on the development of 5G technology and allow China to take the lead. Qualcomm invented 2G and 3G wireless network technology and has been investing heavily in 5G research.
Treasury Secretary Steven Mnuchin said in a statement Monday that the decision was based on “national security sensitivities” and was “not intended to make any other statement about Broadcom or its employees, including its thousands of hard working and highly skilled U.S. employees.”
