Broadcom, one of the world’s leading chipmakers, has completed the financing of its planned purchase of Qualcomm. The acquisition will be the largest M&A deal in the high-tech industry, according to a report.
The acquisition has faced some difficulties, including opposition from Qualcomm and regulators. Broadcom has persevered, however, and has secured a substantial cash position and a line of credit to fund the acquisition.
The purchase will allow Broadcom to increase its presence in mobile technology and 5G and strengthen its position as one of the world’s most innovative chipmakers.
Chip manufacturing is considered a key industry for the future of the digital economy and society in general, as more and more devices become interconnected and need to transmit data in real time. Broadcom’s acquisition of Qualcomm is expected to have a significant impact on the future of the industry.
Broadcom secures funding for Qualcomm purchase
Chip maker Broadcom successfully secured financing to buy Qualcomm. The company has used a combination of debt and equity to raise the necessary funds.
The total value of the acquisition is over $100 billion, making this one of the largest M&A transactions of all time. Broadcom hopes the purchase will help strengthen its presence in the fast-growing mobile device market.
While the merger still needs regulatory approval, the company is confident the deal will close. The two companies have broad patent portfolios and strong technological expertise that allow them to compete in a competitive marketplace.
- Broadcom hopes the purchase will help strengthen its presence in the market
- The total value of the acquisition is more than US$100 billion
- The two companies have broad patent portfolios and strong technological expertise
Broadcom secures financing for Qualcomm takeover
Chipmaker Broadcom has secured funding for its planned record acquisition of rival Qualcomm. The company said Thursday that it has received $100 billion worth of loans.
The Qualcomm acquisition would be one of the largest tech takeovers of all time. Broadcom previously made a $130 billion offer for Qualcomm in November 2017. However, Qualcomm had rejected the offer, arguing that it was too low.
Broadcom’s renewed bid in February 2018 was slightly higher than the original offer, and there has been some movement in negotiations. However, the approval of the acquisition still depends on the regulatory authorities.
- Financing is being provided by a group of banks, including Barclays, Bank of America, JPMorgan Chase and Citigroup.
- The loans have terms of 3 to 5 years and carry interest rates between 2.75 and 3.25 percent.
- Broadcom plans to move its headquarters from Singapore to the U.S., which could boost profits and save about $1.5 billion a year.
The acquisition of Qualcomm would make Broadcom a leader in the semiconductor industry and increase global competitiveness. However, there are concerns about the impact on competition and jobs in the industry.
To date, neither Broadcom nor Qualcomm has provided a timeframe for the completion of the acquisition.