Broadcom building in Irvine
A Broadcom building in Irvine. Photo via Wikimedia Commons

Broadcom said Wednesday it has withdrawn its offer to acquire Qualcomm in the wake of President Trump’s order blocking the sale on national security grounds.

“Although we are disappointed with this outcome, Broadcom will comply with the order,” the Singapore-based company announced prior to the opening of financial markets.

The company also withdrew its slate of independent nominees for Qualcomm’s board.

“Broadcom’s board of directors and management team sincerely appreciate the significant support we received from the Qualcomm and Broadcom stockholders throughout this process,” the company said.

Qualcomm’s stock closed at $60.12 Wednesday, up 42 cents, while Broadcom’s shares were at $260.59, down 63 cents.

Broadcom had offered $79 per share in a deal that would have been valued at over $100 billion. Qualcomm repeatedly rebuffed the offer, leading Broadcom to nominate a slate of independent directors in a proxy battle. Then the government intervened.

Treasury Secretary Steve Mnuchin said the decision was “based on the facts and national security sensitivities related to this particular transaction only and is not intended to make any other statement about Broadcom or its employees.”

Chris Jennewein

Chris Jennewein is Editor & Publisher of Times of San Diego.