US President Donald Trump has issued an executive order prohibiting Broadcom from acquiring rival chipmaker Qualcomm in what would have been the largest tech deal ever. The decision, which follows an investigation by the Committee on Foreign Investment in the US, came just hours after Broadcom announced accelerated plans to redomicile to the US by April 3 as a way to smooth national security concerns related to the $117 billion proposal.
It's the second time in a year Trump has taken direct action against an acquisition—and reportedly the fifth instance in the past 27 years of a US president blocking a foreign takeover. In September, Trump issued an order prohibiting the $1.3 billion take-private acquisition of Lattice Semiconductor by Canyon Bridge, a private equity fund with China-based investors.
Shares of Broadcom (NASDAQ: AVGO) gained almost 4% Monday, while Qualcomm (NASDAQ: QCOM) shed over 4% in after-hours trading.