The deal between Broadcom and Qualcomm, at its conclusion, will be under very close scrutiny of Chinese regulators
As you know, Broadcom wants to buy the Qualcomm company for 130 billion dollars. This deal, if it takes place, will be the largest in the industry.
However, while her many doubts. They added the information that the Chinese regulators, analysts say, will be very closely evaluate the merger.
The point is that when you merge Broadcom and Qualcomm form the largest after Intel and Samsung semiconductor manufacturer, that automatically means major changes in the industry. And China, as we know, currently pursues a policy of active expansion of its own semiconductor facilities. Suffice it to recall Tsinghua Unigroup, buying up smaller companies.
The problem may be political motivated, as in recent months the US has already rejected three deals with Chinese companies.
All this does not mean that China will block a deal. But the regulators can put forward a number of requirements for its participants.
Against this background, it is reported that Qualcomm might just reject the proposal of Broadcom.