After a year and a half! Broadcom closes $69 billion deal to buy VMware
After receiving conditional approval from China's State Administration for Market Supervision and Administration, Broadcom on Wednesday completed its $69 billion acquisition of cloud computing company VMware. Broadcom released a statement on Nov. 22 announcing the completion of the acquisition of VMware, whose common stock will cease trading on the New York Stock Exchange.
The deal, announced in May 2022, is one of the largest in the world and is the latest move by Broadcom CEO Hock Tan to boost the chipmaker's software business.
Chinese regulators approved the deal on Tuesday, following ongoing tensions between the U.S. and China around stricter chip export controls, sparking concerns among some investors that the companies would be able to complete the deal by the Nov. 26 deadline.
The European Commission approved the acquisition after Broadcom offered remedies to help rival Marvell Technology, and the U.K.'s Competition and Markets Authority gave the green light after an in-depth investigation.
Cabot Henderson, market strategist at JonesTrading, said Tuesday, "After Activision Blizzard and VMware are recognized, maybe we'll see some boards willing to act, but don't think we can count on it."
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