The Committee on Foreign Investment into the United States (CFIUS) is a government organization that reviews foreign firms’ transactions or acquisitions of US companies. It is chaired by the treasury secretary, Steven Mnuchin. Some of its members are the secretary of defense, James N. Mattis and the secretary of homeland security, John F. Kelly.
The CFIUS reviews and potentially blocks purchase of any domestic company by a foreign entity to preserve national security of USA.
In January, Moneygram, an American money transfer firm, was to be purchased by Ant Financial, and online-payment services of Alibaba. The CFIUS blocked the purchase.
In 2017, CFIUS suggested to president Trump to block the purchase of Lattice Semiconductor by Chinese investors.
More recently, Broadcom’s bid of $142bn for Qualcom, Singaporean and American tech-firms, has been rejected by Qualcomm’s shareholders. Moreover, the CFIUS is investigating the case and might prevent the deal entirely. Politics and security are connected to the business world. Patterns in CFIUS’s behavior suggest that the US government believes that China is trying to gain world power by purchasing US firms. It is an influential organization that could cause further news in finance.
#US#Government blocks #Broadcom’s bid to takeover #Qualcomm :
The US Government with the aim to protect national security took the major step to block Broadcom's proposed acquisition of rival US-based Qualcomm. Broadcom strongly opposes the matter that the acquisition will harm national security. It is believed that Broadcom might acquire Intel
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Trump Blocks Broadcom Takeover of Qualcomm
U.S. President Donald Trump is blocking Singapore-based Broadcom, maker of computer and smartphone chips, from taking over U.S. chipmaker Qualcomm.
Trump cited national security grounds in stopping the takeover, following the recommendation of the Committee on Foreign Investment in the United States (CFIUS). The committee reviews national security implications when foreign entities purchase U.S. corporations.
The president's order said there is "credible evidence" that the takeover "might take action that threatens to impair the national security of the United States."
Broadcom made an unsolicited bid last year to take over Qualcomm for $117 billion.
The company has been in the process of moving its legal headquarters from Singapore to the United States to help it win approval for the takeover.
8 days ago
Президент США Дональд Трамп подписал указ, запрещающий продажу контрольного пакета акций американской корпорации Qualcomm. Ее пытался приобрести сингапурский концерн Broadcom. Трамп пояснил, что сделка «может поставить под угрозу или нанести ущерб национальной безопасности США». Указ опубликован через неделю после заявления Комитета США по иностранным инвестициям, в котором говорится, что из-за этой сделки другие государства могут опередить США в разработке 5G- технологий.