(Reuters) – Singapore-based Broadcom Ltd withdrew its $117 billion bid to accumulate Qualcomm Inc on Wednesday, two days after U.S. President Donald Trump blocked the try citing nationwide safety issues.
The corporate mentioned it has additionally withdrawn its slate of unbiased director nominees for Qualcomm’s annual shareholder assembly.
Broadcom, nonetheless, expects to proceed with its plan to redomicile to america.
“Though we’re upset with this end result, Broadcom will adjust to the order,” the chipmaker mentioned.
Sources had informed Reuters on Tuesday that Broadcom was able to scrap its bid for Qualcomm.
Broadcom’s board met late on Tuesday to formalize plans to maneuver its base to america, at a value of about $500 million a yr underneath a better tax fee, the sources mentioned.
Being based mostly in america versus Singapore ought to make it simpler for Broadcom to make acquisitions of U.S. firms with out falling underneath the jurisdiction of the Committee on Overseas Funding in america (CFIUS).
Shares of Broadcom had been untraded, whereas these of Qualcomm had been up marginally earlier than the opening bell.
Reporting by Supantha Mukherjee in Bengaluru; Enhancing by Arun Koyyur