Broadcom boss 'will beat Trump deal block'
Broadcom chief Hock Tan is unlikely to slow his acquisition spree after US President Donald Trump blocked the microchip maker's $117bn (€94bn) bid for Qualcomm on national security grounds, analysts have said.
Mr Trump signed an order late on Monday to halt what would have been the biggest-ever technology deal on concerns that a takeover of Qualcomm by the Singapore-based company would erode the United States' lead in mobile technology and give China the upper hand.
The deal would have created the world's number three semiconductor company with a leading market share in smartphones, car electronics and industrial internet devices.
Analysts said Broadcom can still build heft through smaller deals and could have an easier time buying US targets if it goes through with plans to redomicile in the US. Mr Tan has already turned Avago, a small chipmaker with a market value of $3.5bn in 2009, into a more than $100bn company.
"He looks for value. He's of the view that there is a lot of value to be extracted from this industry," said Bernstein analyst Stacy Rasgon. "He buys franchises, things that he believes have competitive modes, long visibility on revenues, opportunities for operational improvements."
Mr Tan bought California-based Broadcom for $37bn in a deal in 2015 and Brocade Communications in a $5.5bn deal two years later. (Reuters)