Broadcom withdraws and terminates Qualcomm offer

Singapore-based Broadcom has withdrawn and terminated its hostile offer to buy US chipmaker Qualcomm after President Trump blocked the deal on the grounds of national security.

Trump announced on Monday that he was blocking Broadcom's $117bn bid, saying there was "credible evidence" that Broadcom and its affiliates "might take action that threatens to impair the national security of the US".

Trump said the companies must "immediately and permanently abandon" the proposed takeover.

Broadcom reacted by saying that it "strongly" disagreed that the deal raises any national security concerns, but by Wednesday it had conceded defeat.

"Although we are disappointed with this outcome, Broadcom will comply with the order," it said in a statement.

"Broadcom's board of directors and management team sincerely appreciate the significant support we received from the Qualcomm and Broadcom stockholders throughout this process."

Broadcom's hostile bid was being investigated by the Committee on Foreign Investment in the US, which said it would cause the US to fall behind on the development of 5G technology and allow China to take the lead.