The U.S. government had blocked the largely hostile $117 billion takeover attempt by Broadcom over Qualcomm. The government had made the decision based on national security concerns.
President Donald Trump blocked Asian chip manufacturer Broadcom’s hostile takeover bid for U.S. rival Qualcomm today, scuttling the deal over national security concerns about China.
The decision comes after a review by the Committee on Foreign Investment in the United States determined the purchase by Singapore-based Broadcom could benefit Chinese competitors in the race to produce next-generation mobile technology and eliminate an important supplier of telecommunications technology to federal defense agencies.
There is an irony here: Broadcom was a U.S. company before it moved its headquarters to Singapore mainly to reduce its tax exposures. The Trump Administration had since redesigned U.S. corporate tax and Broadcom is on its way of Making America Home Again. But that would be late as Trump Government had already decided, advising the firm to forgo the pursuit now and in the future.
To Broadcom, you have saved tons of money. But your $117 billion cannot make up the fact you are not American. Apparently, if you had paid and “lost” $200 million of that money as tax, you might have closed this deal as an American firm.
This explains why no data can quantify the value of nations – your GDP value while in naira and dollars does not make any real sense. But money men need to have numbers to pretend they are thinking and making decisions on something. America has spoken that loads of cash cannot take Qualcomm from their hands even though Broadcom was born American.
Broadcom weeps because no money can buy a nation. This is a lesson on believing in nations. There is a reason many stay in some countries to pay even the high taxes. I am sure the person that suggested for Broadcom to move to Singapore would not be happy tonight.
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