Broadcom Pledges $1.5 Billion U.S. Investment to Ease Regulatory Scrutiny
By Imani Moise
In a move to ease regulatory concerns, Broadcom Ltd. said Wednesday that it is committed to making the U.S. a leader in 5G and plans to invest $1.5 billion in training American engineers.
The announcement comes after the U.S. Treasury, which chairs the Committee on Foreign Investment in the U.S., sent a letter scrutinizing Singapore-based Broadcom's hostile takeover of Qualcomm Inc.
The committee said that Qualcomm's leading position in 5G technology is good for national security and expressed concerns over Broadcom's ties to foreign governments.
CFIUS rarely weighs in publicly on a deal it is scrutinizing, and the panel debated last week whether it even had the jurisdiction to intervene in the Broadcom-Qualcomm battle, since an agreed deal hadn't yet been reached.
But over the weekend the panel, which can recommend the president block deals, ordered Qualcomm to delay its annual shareholder meeting by 30 days so it would give CFIUS time to review the takeover bid.
Write to Imani Moise at email@example.com
Corrections & Amplifications
This article was corrected at 09:08 a.m. ET because the orginal incorrectly said that Broadcom promised to move to the U.S. if a deal was made and CFIUS was concerned about ties to foreign governments. The move isn't contingent on the deal and CFIUS is concerned about ties to foreign organizations.
(END) Dow Jones Newswires
March 07, 2018 07:56 ET (12:56 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.