(Reuters) – Broadcom Ltd (AVGO.O) has promised not to sell critical national security assets to foreign buyers if its deal to buy chipmaker Qualcomm Inc (QCOM.O) is approved, another effort by the Singapore-based firm to appease U.S. security concerns.
Separately, Qualcomm Inc (QCOM.O) said it discontinued the role of executive chairman and named a new non-executive chairman as it seeks to curry favor with shareholders ahead of a proxy fight with Broadcom now slated for April 5.
Qualcomm also said Tom Horton would continue as its lead director. Horton has been a member of the company’s board since December 2008, having previously served as chairman and chief executive officer of American Airlines Group Inc (AAL.O).
Qualcomm’s annual shareholder meeting, now slated for April 5, was postponed by 30 days after the Committee on Foreign Investment in the United States (CFIUS) this week ordered a national security review of the takeover.
The U.S. government has raised concerns that Chinese companies, including the big network equipment and mobile phone maker Huawei Technologies [HWT.UL], will take advantage of any openings to take the lead in the next generation mobile phone networks known as 5G.
“Broadcom will not sell any critical national security assets to any foreign companies,” the letter said. “Of course, any dispositions of assets to foreign buyers would be themselves subject to CFIUS review.”
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