Broadcom has formally withdrawn its takeover offer for Qualcomm after US president Donald Trump issued a rare presidential order blocking the deal.
In a statement, Broadcom said it has terminated its offer to acquire Qualcomm and withdrawn its slate of independent director nominees for Qualcomm's next board.
Trump's recent presidential order cited credible evidence that Broadcom might take action through seizing Qualcomm that “threatens to impair the national security of the United States,” and ordered Broadcom to immediately withdraw both its bid and director nominees.
The order follows a recent Committee on Foreign Investment in the US (CFIUS) verdict that the proposed merger and break-up of Qualcomm could threaten the US government's goal of taking a leading role in the development of the 5G ecosystem, allowing China to take the upper hand.
“Although we are disappointed with this outcome, Broadcom will comply with the Order,” the company said.
Broadcom has indicated it plans to continue with the process of relocating its headquarters back to the US despite its Qualcomm acquisition play falling through.
Qualcomm's board had repeatedly rejected Broadcom's takeover offers, the latest of which was worth $121 billion, on the grounds that the offers undervalue the company.
Broadcom had been responding with a hostile takeover attempt by nominating its own suite of directors to the Qualcomm board, and had pledged to accelerate its plans to relocate to the US in an attempt to appease the CFIUS. But Trump's presidential order put a stop to its hostile takeover attempt.