President Donald Trump blocked the $117 billion hostile takeover of chip maker Qualcomm by Singapore-based Broadcom Monday, Anadolu Agency reports.
Qualcomm had rejected Broadcom's bid, and in announcing his decision, Trump said "there is credible evidence" to believe Broadcom and its partners "might take action that threatens to impair the national security of the United States" if the takeover goes through.
The computer chip makers must "immediately and permanently abandon the proposed takeover", Trump said in a presidential order.
"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 said.
Broadcom said in a statement it is reviewing the order but emphasized it "strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns".
While initially founded in the U.S., Broadcom reincorporated in Singapore in 2016 after it was sold to Avago. It maintains its administrative headquarters in California.