BUSINESS

With approval from China, Broadcom closes a $69 billion deal with VMware

Following regulatory permission in China, the last significant market, Broadcom concluded its $69 billion purchase of cloud computing company VMware on Wednesday, capping a months-long drama. When it was announced in May 2022, the acquisition was among the largest in the world. It was the most recent move in CEO Hock Tan’s endeavors to expand the chipmaker’s software division.theindiaprint.com pm modi applauds the indian para archery team for their success at the asian games

The deal, nevertheless, was subject to stringent regulatory examination worldwide, and the businesses had to postpone the closing date three times.

China’s regulatory permission was received on Tuesday, after investor concerns that the business wouldn’t be able to finalize the transaction by the deadline of November 26 due to continued tensions with the U.S. over stricter export control measures.

Danni Hewson, head of financial analysis at AJ Bell, stated on Tuesday that “the improved mood music after the meeting between China’s President Xi Jinping and U.S. President Joe Biden earlier this month helped to settle remaining nerves.” The companies had announced that they planned to close the transaction on November 22.

The purchase was allowed by the European Commission after Broadcom provided remedies to competitor Marvell Technology, and it was cleared by the UK’s Competition and Markets Authority (CMA) after a thorough inquiry.

JonesTrading market analyst Cabot Henderson said on Tuesday, “Perhaps we will see some boards being willing to move forward now that we have seen the (Activision Blizzard) and (VMware) get blessing, but don’t think we can count on it.”

Large tech acquisitions, like Microsoft’s recently concluded $69 billion acquisition of Activision, the publisher of “Call of Duty,” have come under increased regulatory scrutiny from the US Federal Trade Commission, led by Chair Lina Khan.

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