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Broadcom is set to finalize its $69 billion acquisition of cloud computing company VMWare on Wednesday, marking the conclusion of a major technology industry takeover that underwent thorough regulatory scrutiny worldwide.
Having secured all necessary regulatory approvals, Broadcom is ready to proceed with the acquisition. China, which granted approval on Tuesday, imposed additional restrictive conditions, ensuring VMWare server software compatibility with local hardware. The deal will not hinder customers from acquiring and utilizing Broadcom's hardware products, including storage adapters, as outlined by the Chinese regulator's statement.
Concerns among some investors arose in the past month due to reports suggesting that escalating tensions between the U.S. and China might jeopardize the deal. This unease stemmed from the Biden administration's introduction of stricter controls on high-end chip exports to China in October.
As a result of these developments, Broadcom shares experienced a slight decline of over 1%, while VMware saw a 4.6% decrease. The original closing date for the deal was expected to be November 26, with the observed share movements attributed by brokerage Bernstein to technical impacts from arbitrage trades related to the deal.
