Broadcom had previously announced that it will vote at the Broadcom General Meeting held on May 6 to decide whether to relocate its headquarters to the United States, and it is very likely that this resolution will be passed. In this way, Broadcom will complete its headquarters in the middle of May as soon as possible. migrate.
After Broadcom's headquarters relocation, it is likely to bring regulatory challenges to the US Foreign Investment Commission (CFIUS), which has just announced that it will conduct a full investigation of the acquisition.
On Sunday, CFIUS asked Qualcomm to postpone a 30-day general meeting of shareholders and formally initiated a comprehensive investigation of Broadcom’s acquisition of Qualcomm’s $1,170.
Now, including the American legal community, there are different views on whether Broadcom will need to accept the CFIUS investigation once it moves back to the United States. Some lawyers say that it is unclear whether the CFIUS review will be affected by mergers and acquisitions initiated by companies whose headquarters are relocated to the United States.
CFIUS does not have a clear definition for foreign companies. The definition of 'foreign company' can be considered as actual ownership, as well as formal or informal control.
On March 9th, Broadcom requested the Singapore Court to request the adoption of a special general meeting of shareholders to adopt the relocation plan. This meeting will be held on March 23. Not surprisingly, the Singapore Court will approve the relocation of Broadcom’s headquarters. by.
For the requirements of CFIUS, Broadcom said it will fully comply.
CFIUS’s request for Broadcom was disclosed in an email submitted by Qualcomm to the regulatory agency. CFIUS requested both parties. Qualcomm’s request was that Qualcomm could not do anything that might lead to the acquisition during the supervision team’s review. the behavior of.
CFIUS, as the regulatory agency headed by the U.S. Department of the Treasury, seldom steps in before the actual transaction is reached. The intervention review of Broadcom acquisition reflects the US government’s information security problems caused by this acquisition and its backwardness with China’s future technology competition. Concern.
At present, Qualcomm and the U.S. Treasury Department refused to comment on this. However, yesterday, Qualcomm officially announced that it will exempt Paul Jacobs from executive chairmanship, but he will still retain the company’s board of directors, Qualcomm said. This is to ensure fair evaluation of acquisitions with Broadcom.