CFIUS said such a move could weaken Qualcomm — and thereby the U.S. — against foreign rivals racing to develop next-generation wireless technology known as 5G, such as China’s Huawei Technologies Co.

Read: How Broadcom vs. Qualcomm went from hostile takeover bid to a Trump blockade

Broadcom, which launched its hostile bid for Qualcomm in November in what could have become the technology industry’s biggest-ever deal, was working to redomicile in the U.S. to evade the panel’s review. Qualcomm had earlier rebuffed Broadcom’s $117 billion bid, which was under investigation by the U.S. Committee on Foreign Investment in the United States (CFIUS), a multi-agency panel led by the Treasury Department that reviews the national security implications of acquisitions of U.S. corporations by foreign companies. Shares of Broadcom rose less than 1.0 percent to $264.10 in after-hours trade while Qualcomm fell 4.3 percent to $60.14. Broadcom said it was reviewing the presidential order.“Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns,” it said in a statement in response to the decision. The order cited“credible evidence” that led Trump to believe that Broadcom’s taking control of Qualcomm“might take action that threatens to impair the national security of the United States.”

Broadcom had struggled to complete its proposed deal to buy Qualcomm, which had cited several concerns including the price offered and potential antitrust hurdles. However, it is not clear what rules Broadcom would have to follow if it goes ahead with announced plans to move its headquarters to the United States. Companies may challenge CFIUS’s jurisdiction in court but may not challenge the inter-agency panel’s national security findings, a CFIUS expert said.
Citing national security concerns, U.S. President Donald Trump blocks Broadcom's proposed acquisition of Qualcomm.