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FDI: Entry and ownership rule
On March 12, 2018 President Trump signed an order blocking the proposed takeover of the U.S. multinational semiconductor and telecommunications equipment company Qualcomm Incorporated by Singapore-based Broadcom Limited. More precisely, the order states that, “The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited.” He took this action following a recommendation from the Committee on Foreign Investment in the United States, and under the authority granted him by the Defense Production Act of 1950 (as amended). According to the order,
There is credible evidence that leads me to believe that Broadcom Limited, a limited company organized under the laws of Singapore (Broadcom), along with its partners, subsidiaries, or affiliates, including Broadcom Corporation, a California corporation, and Broadcom Cayman L.P., a Cayman Islands limited partnership, and their partners, subsidiaries, or affiliates (together, the Purchaser), through exercising control of Qualcomm Incorporated (Qualcomm), a Delaware corporation, might take action that threatens to impair the national security of the United States[.]
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