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Rand Paul Calls for National Security Review of Broadcom-CA Merger - Do You Support the Consolidation?

by Axios | Updated on 10.10.18

Senator Rand Paul (R-KY) on Wednesday called for a federal national security review of Broadcom's proposed $19 billion acquisition of Computer Associates Technologies (CA) during a Senate hearing on homeland security.

The bottom line: Sources tell Axios that neither Broadcom nor CA asked for a review of their transaction by the Committee on Foreign Investment in the U.S., but that some within the defense and energy communities have been agitating for a CFIUS review anyway. Paul's public call might move the needle.


The backdrop:

  • President Trump in March blocked Broadcom's attempted purchase of Qualcomm, citing national security concerns around 5G networking and Broadcom's manufacturing and customer ties to China.
  • Broadcom has since redomiciled from Singapore to California.

"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. Is CFIUS reviewing this transaction...

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."

—Statement from Rand Paul


-Dan Primack

Axios

Written by Axios

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(10)
  • J. scott
    10/10/2018
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    As much as I try never to agree with Senator Rand I do think this acquisition by a country that routinely hacks all aspects of our society including our National Defense should not just be scrutinized but should be blocked as have been their previous acquisitions.

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  • Dicr
    10/10/2018
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    If Paul was really concerned about America he would look into why Trump is compromised by Russia. Do your job Rand.

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  • Ritch
    10/10/2018
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    When businesses are owned, controlled or have very close ties to foreign governments or other entities hostile to the US, we need to review any attempts to obtain access to potentially sensitive equipment or materials.

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  • Dave
    10/10/2018
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    Senator Rand Paul (R-KY) on Wednesday called for a federal national security review merger? The republican already let the horse are out of the barn alone time ago, being pro corporation offshoring, now they are consern! Just like climate change, a little late!

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  • Frances
    10/11/2018
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    Anytime big industries consolidate, it is bad for all of us average people!

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  • Christopher
    10/11/2018
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    You can’t give away a tax break to the wealthy and claim concern about a corporate merger. Cleary someone is operating this Muppet for their own gain.

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  • Frank
    10/10/2018
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    This will hinder competition

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  • Azrael
    10/10/2018
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    No

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  • Harry
    10/10/2018
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    Dicr my exact thought you can't trust him does he care or is he looking for support by lying again.

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  • Linda
    10/11/2018
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    Anytime our national security is involved an investigation should be done. Better safe than sorry.

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