The White House on Monday blocked a hostile takeover of USA chip-maker Qualcomm by its rival Broadcom, citing "credible evidence" that the deal would "impair the national security of the United States".
The hostile takeover - Qualcomm had rejected Broadcom's offer - had been under investigation by the Committee on Foreign Investment in the United States, or CFIUS.
The deal would have been the world's biggest technology takeover.
President Donald Trump said late Monday that a takeover of Qualcomm would imperil national security, effectively ending Broadcom's $117 billion buyout bid.
The company also appreciated the statement from the US Treasury Secretary and the Committee on Foreign Investment in the US (CFIUS) chair Steven Mnuchin on March 12. The merger would have put one of America's largest mobile chipmakers in the hands of a company based in Asia, a region that has been racing against American companies to develop the next generation of mobile technology. Fears that Broadcom would wind down Qualcomm's wireless R&D led the Committee on Foreign Investment in the US, or CFIUS, to warn against the deal, which in turn prompted Trump to intervene.
Tan has already turned Avago, a small chipmaker with a market value of $3.5 billion (roughly Rs. 23,800 crores) in 2009, into a more than $100 billion (roughly Rs. 6.5 lakh crores) company.
An interesting postscript to the deal: Broadcom will reportedly continue its plan to relocate its headquarters to the us, even though it will be subject to hundreds of millions of dollars in additional taxes.
Initially, Broadcom issued a terse press release stating that they strongly disagreed that its acquisition of Qualcomm was a threat to national security.
"Over time that would mean US government and USA technology companies could lose a trusted US supplier that does not present the same national security counterintelligence risk that a Chinese supplier does", said Brian Fleming, an attorney at Miller & Chevalier and former counsel at the Justice Department's national security division. "He's of the view that there is a lot of value to be extracted from this industry", said Bernstein analyst Stacy Rasgon.
Most analysts assume Broadcom will now walk away from Qualcomm, with some flagging San Jose-based Xilinx Inc and Israel's Mellanox Technologies Ltd, both diversified makers of communications chips, as likely next targets.