Qualcomm-Broadcom deal halted by Trump over national security concerns

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The deal between the two giants seems to have halted because of the no go from the President of the United States. The reason was concern over national security.

The loan that a lot of banks were about to give to Broadcom Ltd in order to takeover Qualcomm Inc was $100bn. The total takeover would reach $117bn.

The previous record was held by global brewer AB InBev and reached $75bn and backed the purchase of SABMiller.

The bank financing package included a US$20bn, one-year cash flow bridge facility; a US$4.477bn, two-year term loan; a US$19.679bn, three-year term loan; a US$19.679bn, five-year term loan; and a US$5bn, five-year revolving credit facility, LPC previously reported.

The banks were Deutche Bank, Jp Morgan, Bank of America Merril Lynch, Scotiabank, Citigroup, MUFG, SMBC, BMO Capital Markets, Royal Bank of Canada, Morgan Stanley and Wells Fargo and all were lead arrangers and joint bookrunners on the syndicated loan.

In syndicated loans for investment grade credits, a portion of the bridge fees is usually paid at the announcement of the deal. The other portion is paid at 90 days.

Qualcomm is one of the biggest Chinese competitors of Huawei Technologies Co Ltd.

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