Hoping to avoid a prolonged national security review, Singapore-based Broadcom said it will move its international headquarters back to the U.S. by April 3 as it continues a hostile takeover bid for rival Qualcomm. In a press release today, Broadcom confirmed the date for the first time while also emphasizing its roots in the U.S. Indeed, the whole snarled mess surrounding the notion of a foreign company buying a prize like Qualcomm goes right to the heart of what one means by U.S. company. Politicians are worried by the thought of an Asia-based company seizing control of Qualcomm, which is emerging as a leader in next-generation 5G chips. Qualcomms board has fought the bid since last November even as Broadcom raised the price to $121 billion. Last week, the U.S. Treasurys Committee on Foreign Investment in the United States (CFIUS) released a letter saying it was reviewing the transaction for national security risks, putting the deal temporarily on hold. This was not entirely surprising and was one of the reasons Broadcom announced at a ceremony with President Trump last November that it plans to relocate to the U.S. The company said in its press release today that it supports the CFIUS process and noted that the agency had previously reviewed and cleared its acquisition of Brocade in November 2017. At the close of that transaction, Broadcom agreed to relocate. The move to the U.S. will be a homecoming for a company that in many ways never really left. Broadcom began life in Irvine, California as a fabless semiconductor company. It was acquired in 2016 by Avago Technologies, which started as a product division of Hewlett-Packard and was spun off in 1999 into Agilent Technologies. After that deal, Avago renamed itself Broadcom and established joint headquarters in Singapore and San Jose. In many ways, what Broadcom refers to as a plan to redomicile to the U.S. is a largely symbolic move. The company hasnt said how many executives or what, if any, operations may be shifted. But it emphasized that it believes the change should eliminate any fears around national security. In short, U.S. national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation, the company said. Whether that does actually satisfy the CFIUS remains to be seen. Meanwhile, amid delays in reaching a deal, rumors have emerged that rival Intel is considering making a bid for Broadcom.
After getting delayed by at least a month or so following a regulatory investigation just days before the meeting was scheduled to take place, Qualcomms timetable to hold the meeting is now bumped up to ten days from now — and possibly before Broadcom may complete its move to the U.S. The new change is coming as part of a presidential order by the Trump administration to block a takeover attempt by Broadcom, which is looking to acquire the company in a hostile maneuver worth over $100 billion — making it the largest tech deal of all time. Qualcomm planned to hold the meeting last week, but had to push it back pending an investigation by the Committee on Foreign Investment in the United States (or CFIUS). Qualcomm also said in a statement that the order disqualified the nominees from Broadcom for the shareholder meeting, which would have given it the capacity to acquire Qualcomm in a hostile takeover. Broadcom said it planned to move its headquarters to the U.S., and Bloomberg reported that the company said it would have completed its move by April 3 — again, days before the shareholder meeting was to originally take place. The sum of all these moves — strategic or otherwise — is that, for now, it looks like Qualcomm isnt going to even give Broadcom a shot at getting the directors on board that could help it complete its hostile takeover. Its also a setback for Broadcom CEO Hock Tan, known as an aggressive dealmaker thats looking to lock up the industry in the face of companies like Intel looking to make their moves into the 5G space. Qualcomm Incorporated (NASDAQ: QCOM) today received a Presidential Order to immediately and permanently abandon the proposed takeover of Qualcomm by Broadcom Limited (NASDAQ: AVGO). Under the terms of the Presidential Order, all of Broadcoms director nominees are also disqualified from standing for election as directors of Qualcomm. Qualcomm was also ordered to reconvene its 2018 Annual Meeting of Stockholders on the earliest possible date, which based on the required 10-day notice period, is March 23, 2018. Stockholders of record on January 8, 2018 will be entitled to vote at the meeting. In short, the drama continues. See also: A brief history of the epic battle over the fate of Qualcomm.