According to a Reuters report, chip maker Broadcom said in a statement Friday that the U.S. Federal Trade Commission (FTC) has requested for the second time that the company has launched a hostile takeover bid of $103 billion from another chip maker Qualcomm. The company provides relevant information. The FTC's move may indicate that the anti-monopoly review of this acquisition is intensifying.
The FTC's review is part of the antitrust process outlined in the Hart-Scotts-Rodino Act of the United States and is intended to review potential antitrust M&A deals. The FTC website stated that most of the transactions reviewed by the FTC and the US Department of Justice can continue after the first preliminary review.
However, if the FTC requests a second time for a transaction to provide information, the company concerned must provide the FTC with more information on the transaction. Previously, Qualcomm considered that the transaction would face long-term anti-monopoly review as part of its opposition to Broadcom's acquisition.
Broadcom said that it has anticipated that the FTC will issue a request to it for the second time, which is a normal part of the regulatory review process.
The company said in a statement: "This means that the transaction is entering the next phase of the US antitrust review process."
According to sources who declined to be named, the FTC will request information on a transaction for the second time, usually because the transaction is too complex and too large, and Broadcom’s potential acquisition of Qualcomm may still be approved.
Qualcomm declined to comment on this news, and the FTC did not respond to requests for comment.
This week, Broadcom said that another review of its customer relationship by FTC has nothing to do with its business and has nothing to do with its wireless business, nor has it affected its offer to acquire Qualcomm.
Broadcom said that it is very confident that it will complete the acquisition of Qualcomm in 12 months, and Qualcomm said that the global regulatory review process for this transaction will take longer.
At the same time, one of Qualcomm’s own transactions has made progress. This week, the European Union’s anti-monopoly regulator approved Qualcomm’s $38 billion acquisition of NXP Semiconductors. One source said that only China has not yet approved the transaction and it is expected to approve within the next two weeks.
However, high-energy acquisitions of NXP Semiconductors still face an uncertain future, as some shareholders of NXP Semiconductors asked Qualcomm to increase their offers.
Broadcom is proposing to acquire Qualcomm at a price of $60 per share in cash and $10 in Broadcom shares, which will cost $103 billion. In order to exert pressure on Qualcomm, Broadcom proposed 11 Qualcomm board member nominations to replace Qualcomm's existing board of directors. Qualcomm shareholders are scheduled to hold a general meeting of shareholders in March this year to vote on the nominees for these board members.
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