Broadcom said talks with the Committee on Foreign Investment in the United States (CFIUS) have resulted in the group withdrawing its application for merger clearance to the committee. Pending further talks, it will refile the application, after which CFIUS will have 30 days, extendable by another 45 days, to consider the deal.
CFIUS clears investments involving foreign shareholders to ensure there is no threat to US defense or interests. Broadcom did not comment on what issues the regulator may have with the deal, but the company has already agreed the sale of a number of Brocade activities pending completion of the acquisition. These transactions, such as Extreme Networks' takeover of Brocade's data networking business, will also be delayed.
