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On Wednesday, October 10, U.S. Senator Rand Paul (R-KY) sent a letter to Treasury Secretary Steven Mnuchin, who serves as chair of the Committee on Foreign Investment in the United States (CFIUS), urging the Committee “to review the proposed acquisition of CA Technologies by Broadcom.”
Originaltitel
Sen. Rand Paul Letter to Treasury Secretary Mnuchin on Broadcom
On Wednesday, October 10, U.S. Senator Rand Paul (R-KY) sent a letter to Treasury Secretary Steven Mnuchin, who serves as chair of the Committee on Foreign Investment in the United States (CFIUS), urging the Committee “to review the proposed acquisition of CA Technologies by Broadcom.”
On Wednesday, October 10, U.S. Senator Rand Paul (R-KY) sent a letter to Treasury Secretary Steven Mnuchin, who serves as chair of the Committee on Foreign Investment in the United States (CFIUS), urging the Committee “to review the proposed acquisition of CA Technologies by Broadcom.”
RAND PAUL,
Anited States Senate
October 10, 2018
‘The Honorable Secretary Mnuchin
Secretary of the Treasury
Washington, DC 20220
Dear Mr. Secretary
| ite to express my concems regarding the attempt by Broadcom, a Chinese-controlled corporation, to acquire CA
“Technologies and urge the Committee on Foreign Investment in the United States (CFIUS) to conduct a review of
the transaction.
CA Technologies provides support services to American critical infrastructure systems. For example, CA
‘Technologies offers mainframe software and maintenance to American utilities, healthcare companies, and financial
institutions, Additionally, the company provides network services tothe U.S. Army, the Defense Information
Systems Agency, and the Social Security Administration, among others. Clearly, CA Technologies is relied upon to
handle and protect extremely sensitive information.
Earlier this year, CFIUS cited national security concems to block Broadcom from aequiring Qualcomm, a developer
and provider of communication technologies. Specifically, CFIUS commented that a weakening of Qualcomm’s
technological leadership would result in a scenario in which “China would likely compete robustly to fill any void
left by Qualcomm.” CFIUS further stated, “[gliven well-known U.S. national security concems about ... Chinese
telecommunications companies, a shift to Chinese dominance in 5G would have substantial negative national
security concerns for the United States.” Simply because Broadcom recently moved its domicile to the United States
does not mean that itis no longer a Chinese-controlled company or thatthe national security concems previously
expressed by CFIUS no longer persist. Given the circumstances surrounding the proposed takeover of CA
‘Technologies by Broadcom, a CFIUS review is entirely appropriate.
understand that fling with CFIUS is a voluntary action, however, CFIUS may act ifit believes a deal would
‘threaten national security. Only a CFIUS review of this proposed takeover can ensure that American national
security is protected,
| respectfully urge CFIUS to review the proposed acquisition of CA Technologies by Broadcom. Thank you for your
consideration and | look forward to working with you on this matter.
ond Gow
Rand Paul, MD.
United States Senator
CC: President Donald J. Trump
‘Attorney General Jeff Sessions
Secretary of Homeland Security Kirsten Nielsen
Secretary of Commerce Wilbur Ross
Secretary of Defense James Matts
Seoretry of State Mike Pompeo
Seeretary of Enerny Richard Perry
‘Ambassador Robert Lighthizer
Director of the Office of Science and Technology Policy John P. Holdren