On Wednesday, Broadcom withdrew its offer for Qualcomm, saying it would comply with the order.
What’s unusual is the timing of both the warning and the presidential order, which came before Qualcomm and Broadcom ever formally agreed to a deal. CFIUS, which is part of the Treasury Department, tends to step in only after a deal is struck and has to go through regulatory review. Indeed, Qualcomm was in the midst of fighting off a hostile takeover. The expedited action underscores the government’s view of the importance of 5G wireless technology.
“There is credible evidence that leads me to believe that Broadcom … might take action that threatens to impair the national security of the United States,” Trump wrote in the executive order.