Broadcom is close to officially returning its headquarters to the United States and is now expecting to complete its re-domiciliation process by April 3, the still-Singapore-based company said Monday. The move may allow the technology giant to avoid added scrutiny of its attempt to acquire Qualcomm which recently faced opposition from the Treasury Department’s Committee on Foreign Investment in the United States. By fully relocating back to San Jose, California, the firm is likely to stop the national security panel’s review of its proposed merger as the committee doesn’t have jurisdiction over domestic tie-ups which a possible Broadcom-Qualcomm consolidation would technically become following the move.
The company can still expect opposition from other branches of the U.S. government due to its close ties with certain foreign entities which were mentioned by a Treasury Department official last week. Broadcom previously dismissed any allegations that its proposed tie-up would impact the U.S. in any way that isn’t positive, having already vowed it will turn the country into “a 5G leader” if it manages to complete the deal. Not all industry watchers are convinced by such claims, with some pointing to Broadcom CEO Hock Tan’s M&A track record that often saw his acquisitions hit with significant cost-cutting efforts on all fronts that aren’t immediately profitable. Some analysts previously suggested Broadcom is primarily interested in Qualcomm’s existing 5G tech that it lacks itself, whereas many of its current offerings are facing obsolescence with the advent of 5G. A number of particularly skeptical insiders even signaled Broadcom’s hostile takeover attempt is primarily aimed at Qualcomm’s cash reserves that it needs to pay off its own debts.
Broadcom on Monday once again dismissed national security concerns surrounding the potential deal, claiming there won’t be any if the tie-up is completed given how the process of merging the two entities would never start without Broadcom’s re-domiciliation being concluded. The tech giant is also quick to point out that it’s largely led by American executives and hence shouldn’t be deemed a foreign suitor. The Qualcomm-Broadcom showdown may see its end early next month when the chipmaker’s recently delayed annual shareholder meeting is scheduled to take place, allowing its investors vote on Broadcom’s director nominees, i.e. decide whether to sell the company in spite of its current management that’s attempting to resist the takeover.