Broadcom-VMware takeover deal finalised after months of wrangling

Date:
Thu, 23 Nov 2023 10:13:32 +0000

Description:
After months of waiting and concerns over geo-political tensions, Broadcom-VMware takeover is finally approved.

FULL STORY ======================================================================

Broadcom has ended a months-long saga and closed its $69 billion deal to acquire VMware after finally being granted regulatory approval in China.

The deal closed on November 22 after first being announced in May 2022,
having faced delays due to global scrutiny on the basis of regulations, pushing back the date on three separate occasions.

The happy ending comes after many expressed concerns that US-China tensions could get in the way of chipmaker Broadcoms acquisition of cloud computing firm VMware, both headquartered in California. China permits VMware sale to Broadcom

Confirmation from China came through on November 22, just days before the deals November 26 deadline.

AJ Bells head of financial analysis, Danni Hewson, said that the fairly positive meeting between China's President Xi Jinping and US President Joe Biden earlier this month might have settle[d] remaining nerves (via Reuters
).

Hock Tan, Broadcoms President and CEO, said , "We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams as we take another important step forward in
building the world's leading infrastructure technology company.

Broadcom says that the deal will enable enterprise customers to create and modernize their private and hybrid cloud environments.

Chinas decision to grant regulatory permission was awarded on the basis that the merger would not abuse its market position, demanding that it would allow interoperability between VMwares servers and other third-party hardware providers.

Tech companies have been under intensifying scrutiny in recent months over an assortment of anticompetitive practices, so its in Broadcoms best interest to adhere to Chinas request not just in China, but globally, or else it could face some pretty hefty fines. More from TechRadar Pro Check out the best
cloud hosting providers and the best cloud storage Broadcom accused of
abusing dominant position in the US Weve rounded up the best productivity tools



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Link to news story: https://www.techradar.com/pro/broadcom-vmware-takeover-deal-finalised-after-mo nths-of-wrangling


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