President Donald #Trump
's decision to quash an overseas bid for #Qualcomm
Inc. was almost certainly the right thing to do. That it came with little warning and not much explanation, however, suggests some significant flaws in the way the U.S. evaluates such deals. #CFIUS
too often leaves foreign businesses guessing about what it finds acceptable. CFIUS can't be expected to elucidate its reasoning for every decision. But it can be more open about what sectors it deems sensitive, what remedies it will accept, and how it will approach technologies with dual civilian and military uses.
Ltd., based in Singapore, had made an unsolicited $117bn offer to acquire Qualcomm, a leading U.S. chipmaker. Amid scrutiny of the bid by the Committee on Foreign Investment in the U.S. - a panel that reviews such deals for security concerns - Trump issued an executive order blocking it. It was only the fifth such deal ever held up by a U.S. president, and the largest by far.
#Mergers #DealMaking #Takeovers #Acquisitions #Technology #MergerandAcquisition #TechCompanies #FailedMerger #Regulators
Trump Is Right to Quash the Qualcomm Merger