According to a recent Reuters report, chip giant Broadcom has confirmed that the U.S. Federal Trade Commission (FTC) has once again asked the company to provide additional information regarding its $103 billion hostile takeover bid for Qualcomm. This second request signals a more rigorous review of the proposed acquisition, raising concerns about potential antitrust issues in the semiconductor industry.
The FTC’s process is part of the Hart-Scott-Rodino Antitrust Improvements Act, which requires companies to notify regulators before large transactions can proceed. Typically, most deals move forward after an initial review. However, when the FTC requests additional information, it often means the deal is under closer scrutiny and may face delays or even rejection.
Qualcomm had previously warned that the regulatory process would be lengthy, especially given the scale of the deal. Broadcom, on the other hand, claims it anticipated this second round of inquiries as a standard part of the review process. The company stated in a release: “This indicates that the transaction is now entering the next stage of the U.S. antitrust review.â€
Industry sources suggest that the second request usually comes when a deal is complex or involves significant market power. While the approval of the Broadcom-Qualcomm merger remains uncertain, many believe it could still go through, depending on how regulators evaluate its impact on competition.
Qualcomm has not commented on the latest development, while the FTC has also remained silent. Meanwhile, Broadcom emphasized that the current FTC review is unrelated to its ongoing customer relationship investigations, and it continues to pursue the Qualcomm acquisition without any interference.
Despite the regulatory hurdles, Broadcom remains optimistic, stating it expects to complete the deal within 12 months. However, Qualcomm has expressed concerns that the global regulatory process will take longer than expected.
In contrast, another major deal involving Qualcomm has seen progress. The European Union recently approved Qualcomm’s $38 billion acquisition of NXP Semiconductors, with only China yet to give its final approval—expected within the next two weeks. However, the deal still faces uncertainty, as some NXP shareholders have pushed for a higher offer from Qualcomm.
Broadcom’s proposal to acquire Qualcomm includes $60 in cash per share and $10 in Broadcom stock, totaling $103 billion. To pressure Qualcomm into accepting the offer, Broadcom has nominated 11 of its own candidates for the Qualcomm board, aiming to replace the existing board members. Qualcomm shareholders are set to vote on these nominees at their annual meeting in March.
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