The Real Reason Broadcom Returned To The US: To Launch A Hostile $100BN Bid For Qualcomm

One day after Broadcom surprised markets, and the US public, when the $100 billion Singapore company announced it would legally relocated to the US, Bloomberg and the WSJ report that Broadcom is considering a $100 billion deal for Qualcomm. The two are linked.
As a reminder, on Thursday, Broadcom – which manufactures communications chips around the world – said it would relocate its legal address to Delaware once shareholders approve the move, bringing $20 billion in annual revenue back to the U. S. The move would allow Broadcom to avoid a cumbersome federal review process, while Donald Trump, who tied the Broadcom announcement with the release of congressional Republicans’ tax reform proposal (which in addition to slashing corporate rates, would also makes it easier for companies to deduct foreign taxes), boasted that the redomiciling was a sign of corporate approval of the Trump tax reform.
The company credits the GOP plan with making it easier to do business in the U. S. ‘America is once again the best place to lead a business with a global footprint,’ Broadcom CEO Hock Tan said. However, Broadcom’s move to the U. S. will take place regardless of whether the Republican plan passes, the company said.
One day later, we find that Broadcom’s decision to “return to the US” had nothing to do with any seal, either approving or disapproving, of Trump’s tax plan, of any other political statement of the ongoing tax process in Congress, but had far simpler, and more ulterior motives.
As both Bloomberg and the WSJ report, Broadcom is considering an unsolicited bid of more than $100 billion for Qualcomm – which has had a falling out with Apple in recent months – in what would be the biggest-ever takeover of a chipmaker.

This post was published at Zero Hedge on Nov 3, 2017.