Senator Rand Paul called for a national security review of the $19 billion Broadcom-CA merger during a Senate homeland security meeting.
Paul cited concerns that 60% of electric companies in the country are serviced by companies using systems from Computer Associates Technologies.
In March, President Trump blocked Broadcom from acquiring Qualcomm over national security concerns.
During a Wednesday Senate hearing on homeland security, Republican senator Rand Paul requested a national security review of the pending $19 billion Broadcom-CA merger.
Broadcom was already blocked from acquiring Qualcomm by President Trump in March over national security concerns, including Broadcom’s relationship with Chinese manufacturers. Now, Paul is citing concerns that 60% of electric companies in the country are serviced by companies using systems from Computer Associates Technologies (CA).
Although Broadcom has moved from Singapore to the United States, Paul believes the Committee on Foreign Investment in the United States should look into the acquisition.
Here is part of Paul’s statement:
“Earlier this year CFIUS intervened to block Broadcom from acquiring Qualcomm on national security concerns. Now Broadcom is about to complete acquisitions of Computer Associates Technologies, also known as CA Technologies, whose network systems are deeply embedded in many of our critical infrastructure facilities and national security agencies. For example, 60% of us electric companies are serviced by companies using CA systems. Similarly their systems are used in 29 nuclear reactors.
We will send you a letter advocating that CFIUS looks at this… Just because Broadcom has changed its domicile to [the U.S.] doesn’t mean we shouldn’t look at Broadcom.”
SEE ALSO: Broadcom’s $19 billion deal to buy ‘unloved’ CA Technologies shocked everyone and crushed the stock — here’s what they could be missing
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Source:: Business Insider