Qualcomm rejects the offer of Broadcom to $ 130 billion

Photo: Mark Schiefelbein Associated Press
This attempt at rapprochement comes as the semiconductor industry is in full consolidation.

New York — The board of directors of the group of semiconductor Qualcomm has rejected on Monday an unsolicited offer for its competitor Broadcom, valued at $ 130 billion.

 

This proposal, which would be one of the biggest of this type in new technologies, had been made on the 6th of November.

 

“The board of directors is unanimous in the view that the proposal of Broadcom underestimates significantly Qualcomm in view of its dominant position on the market of mobile technologies and our growth prospects,” said Paul Jacobs, p.-d. g. of Qualcomm, quoted in a press release. Broadcom offered $70 per share of Qualcomm, which will add $ 25 billion of debt to reach a total of $ 130 billion.

 

Qualcomm is already involved in the takeover of its Dutch competitor NXP, a transaction valuing the latter at $ 47 billion dollars. Broadcom had stated in presenting its offer that its offer to buy was valid as Qualcomm succeeds or not to buy NXP.

 

Mobility

 

This attempt at rapprochement comes as the semiconductor industry is undergoing consolidation due to the development of technologies related to autonomous vehicles and connected objects. This movement is amplified by the passage of the 4G to the 5G, with the coexistence of computers and smart phones.

 

The japanese SoftBank has recently bought the uk Arm Holdings for eur 28.5 billion, while the giant of the computer chips Intel has spent $ 16.7 billion to the u.s. group Altera.

 

In 2015, Broadcom was itself born out of the takeover of the american group of the same name by the group on the us-singapore Avago Technologies to $ 37 billion. The new entity retained the name of Broadcom, but the headquarters had been established in Singapore. Qualcomm is headquartered in San Diego.

 

A wedding Broadcom-Qualcomm could face a veto by the competition authorities, the two companies are leading players in the technologies wi-fi and Bluetooth, and the second is already under investigation for a dominant position in many countries, including the United States.

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