Broadcom on Wednesday closed its US$69-billion acquisition of VMware after receiving regulatory approval in last major market China and ending a months-long saga.
The deal, one of the biggest globally when announced in May 2022, was the latest in CEO Hock Tan’s efforts to boost the chip maker’s software business.
However, the transaction faced tough regulatory scrutiny across the world and the companies had delayed the closing date three times.
China’s regulatory approval came through on Tuesday after ongoing tensions with the US around tougher chip export control measures had stoked fears among some investors on the company’s ability to close the deal before the 26 November deadline.
“The improved mood music after the meeting between China’s President Xi Jinping and US President Joe Biden earlier this month helped to settle remaining nerves,” Danni Hewson, head of financial analysis at AJ Bell, said on Tuesday, after the companies said they planned to close the transaction on 22 November.
The European Commission had approved the acquisition after Broadcom offered remedies to help rival Marvell Technology while the UK’s Competition and Markets Authority gave its green light following an in-depth investigation.
Big tech mergers such as Microsoft’s now-closed $69-billion purchase of the Call of Duty publisher Activision have faced heightened regulatory pressure from the US Federal Trade Commission under its chair Lina Khan. — Harshita Mary Varghese, (c) 2023 Reuters