Broadcom VMware: Broadcom, a supplier of computer chips and software, says it has cleared all regulatory hurdles and expects to complete its $69 billion acquisition of cloud technology company VMware on Wednesday.
Broadcom has stated that it has cleared all regulatory hurdles and will complete its $69 billion acquisition of cloud technology provider VMware on Wednesday. The San Jose, California-based corporation announced its intention to proceed with the transaction after China joined the list of countries that have approved the acquisition.
Broadcom is paying $61 billion in cash and stock for VMware, as well as taking on $8 billion in debt, making this one of the largest technology transactions in history. The announcement came shortly after Microsoft paid $69 billion for video game producer Activision Blizzard, making it one of the most expensive tech purchases in history.
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Broadcom took 18 months to obtain all regulatory permits, just days before the merger deal was set to expire. The deal was approved after China’s State Administration of Market Regulation concluded Broadcom’s assurances, submitted on Monday, would mitigate the merger’s impact.
Massive buyouts are taking place at a time of increased uncertainty due to disruptions in the global supply chain, war in Europe and the Middle East, and rising costs, which have the potential to dampen both corporate and consumer activity. Broadcom’s takeover proposal had previously been approved by Britain’s competition regulator.
Numerous enterprises and government agencies, including major banks, major retailers, telecom providers, and government departments, rely on Broadcom equipment and VMware software. The European Commission, the EU’s executive arm and chief antitrust regulator, approved the transaction after Broadcom made concessions to satisfy competition concerns.
Broadcom wishes to strengthen its position in the cloud computing sector, and VMware’s technology enables huge organizations to integrate public cloud access with internal company networks. VMware, situated in Palo Alto, California, works closely with every major cloud company and provider, including Amazon, Google, and Microsoft.
Broadcom stated in a statement that it had legal approvals in Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, and the United Kingdom, as well as “foreign investment control clearance in all necessary jurisdictions.”
“There is no legal impediment to closing under U.S. merger regulations,” the statement stated.
A flurry of such transactions have occurred after technology companies’ shares fell from stratospheric prices reached during the pandemic, making such acquisitions more cheap. Broadcom CEO Hock Tan, on the other hand, has been chasing such mergers for years, building out the company with large purchases such as Symantec for close to $11 billion in 2019 and CA Technologies for almost $19 billion the year before.Tan praised the acquisition of VMWare as a “very unique opportunity to take our company and its business to the next level” on an earnings call shortly after the deal was announced.
Frequently asked questions
Is VMware acquired by Broadcom?
South Korea’s Fair Trade Commission has provisionally authorized Broadcom’s acquisition of VMware, leaving China as the last holdout before the deal’s expected October 30 closing date.
Is Broadcom buying VMware from Dell?
If the purchase goes through, Michael Dell of Dell Technologies will make billions. Broadcom’s planned acquisition of VMware has reached yet another milestone. VMware stockholders approved the $61 billion acquisition last Friday. This pushes Broadcom’s acquisition closer to completion.
Is Broadcom a Chinese company?
Broadcom Inc. is an American multinational semiconductor and infrastructure software product creator, developer, manufacturer, and global supplier.
Who is the CEO of Broadcom?
Tan, Hock E.
Broadcom’s President, Chief Executive Officer, and Director is Hock Tan. He’s been in this role since March 2006.
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