Broadcom is now a US company, having fully redomiciled its business as of Wednesday, April 4, according to the company. Shareholders of Broadcom Ltd. stock received shares in the newly issued stock of Broadcom Inc. on a one-for-one basis.
Although Broadcom’s plan to redomicile was announced in November in the White House alongside US President Donald Trump, it was not enough to assuage US concerns about losing the 5G technology race to China.
Now, the former target company, Qualcomm, itself risks becoming a larger casualty of the widening trade war between the US and China.
The stop imposed by President Trump to Singapore-based Broadcom’s $117 billion dollar hostile takeover bid for US chip maker Qualcomm may not stop cross-border acquisitions but sets a precedent for foreign deals.
“I do expect Trump’s stance to limit some cross-border M&A but not completely eliminate it,” Angelo Zino, senior equity analyst at CFRA Research, tells Global Finance. “It will depend on the technology being acquired and size of the deal.” California-based chip-equipment maker KLA-Tencor recently announced plans to buy Israeli firm Orbotech.