"By exploiting gaps in the existing CFIUS review process", Cornyn said, "potential adversaries, such as China, have been effectively degrading our country's military technological edge by acquiring, and otherwise investing in U.S. companies".
The odds of a completed deal were already low after the Committee on Foreign Investment in the USA ordered a 30-day stay in Broadcom's attempt to overturn a majority of the board of Qualcomm and force the company into negotiations on its $100 billion offer.
"Qualcomm has become well-known to, and trusted by, the US government", the Treasury Department said in a March 6 letter. "Broadcom would have likely dismantled Qualcomm's long-term investment in wireless, so the block is understandable", he said.
This weekend, before Trump's order, Mir wrote the same lawyers again, this time to note that the CFIUS investigation "has so far confirmed the national security concerns" identified in his earlier letter.
Broadcom Chief Executive Hock Tan and other Broadcom representatives were scheduled to meet with CFIUS officials on Monday, according to the letter.
Broadcom has repeatedly fouled up the politics on this deal and issued clumsy, vague rebuttals to the CFIUS review.
Even though Broadcom is a Singapore-based company, any kind of connection with USA information technology information seeping into China was the main concern impacting the president's action. Last week, the CFIUS issued an interim order to Qualcomm directing it to postpone its annual stockholders meeting and election of directors by 30 days.
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Broadcom said it was reviewing the presidential order."Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns", it said in a statement in response to the decision.
For instance, the U.S. committee cleared Beijing-based Naura Microelectronics Equipment Co in January to buy United States semiconductor manufacturing equipment maker Akrion Systems LLC.
The Naura-Akrion deal's completion is seen by some as a bright spot amid the growing spectre of a trade war between the two countries following the US's announcement of impending stiff tariffs on steel and aluminium and Trump's accusing China of dumping cheap steel onto the global market. While Intel is "eager for Broadcom to fail", it could make a play for the company if the merger gained momentum, the Journal said in another report on Friday.
Trump noted the company already employed over 7,500 workers in the U.S. and said: "We are looking forward to seeing that number grow very substantially". That's the case despite Broadcom's move to redomicile itself and the fact that the immediate risk was Broadcom's nominees being elected to Qualcomm's board, not a merger being agreed - let alone consummated. Qualcomm said it would challenge that fine.
Shares of Broadcom were marginally higher at $264.50 a share in after-hours trading.
In a letter to both companies' attorneys last week, the interagency panel said it was concerned that Broadcom's takeover would put at risk US efforts to build next-generation wireless networks, thereby giving Chinese firms the opportunity to take the lead.