Broadcom plans to close $69 billion VMWare deal on Wednesday
(1/2)3D printed clouds and figurines are seen in front of the VMware cloud service logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration acquire licensing rights
Nov 21 (Reuters) – Broadcom (AVGO.O) said it plans to complete its $69 billion acquisition of cloud computing company VMWare (VMW.N) on Wednesday, completing one of the largest buyout deals of the technology sector which has been closely scrutinized. by regulators around the world.
The chipmaker has now received all regulatory approvals for the purchase after China approved the acquisition with additional restrictive conditions earlier on Tuesday, it said.
VMWare server software is expected to work with local hardware and the deal should not prevent customers from purchasing and using Broadcom’s hardware products such as storage adapters, the Chinese regulator said in a statement.
Some investors in the companies had worried about the outcome of the deal after reports last month indicated that rising Sino-U.S. tensions could lead China’s regulator to scupper the deal.
Tensions between Beijing and Washington escalated after the Biden administration introduced tighter controls on high-end chip exports to China in October.
Broadcom shares were down more than 1%, while VMware was down 4.6%. The deal was previously expected to be completed by November 26.
Broker Bernstein attributed the stock movements to some technical impacts related to arbitrage operations surrounding the transaction.
Reporting by Zaheer Kachwala and Harshita Mary Varghese in Bengaluru and Twinnie Siu in Hong Kong; Editing by Anil D’Silva and Shounak Dasgupta
Our Standards: The Thomson Reuters Trust Principles.
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