Bid for Qualcomm may face scrutiny

Chipmaker Broadcom Ltd's $105 billion proposal to buy its United States rival Qualcomm Inc is likely to face intense regulatory scrutiny in China, given the deal's huge size and potential impact on Qualcomm's joint ventures in the country, analysts said on Tuesday.

Wang Junlin, an antitrust lawyer at Beijing-based Yingke Law Firm, said the alliance, which could create a $200-billion-plus behemoth in the semiconductor sector, will be closely watched by regulators around the world.

Broadcom said on Monday that it plans to pay $70 a share to acquire Qualcomm in the largest-ever takeover in technology sector. The offer represents a 28 percent premium over Qualcomm's closing price on Nov 2.