:max_bytes(150000):strip_icc()/GettyImages-1321540139-645464bd5f4a4a10a8408e0ba81ce4e1.jpg "Breaking News: Broadcom Completes Acquisition of VMware After Clearance from Chinese Regulators")
Key Takeaways
- Broadcom completes its $69 billion acquisition of VMware after receiving approval from Chinese regulators.
- Concerns about potential impacts on competition caused delays in the deal’s closure.
- Broadcom shares were down after reaching an all-time high on Monday.
It has taken a year and a half, but Broadcom (AVGO) has finally acquired rival software firm VMware (VMW).
The $69 billion agreement, first announced in May 2022, faced multiple delays due to concerns about reduced competition. The final approval came from Chinese officials, marking the deal’s completion.
Initially, there were doubts about the deal’s success amid tensions between the U.S. and China over export sanctions on technology products. These tensions eased after a meeting between President Biden and Chinese leader Xi Jinping.
Broadcom CEO Hock Tan emphasized that the combined company will enhance global enterprises’ ability to adopt private and hybrid cloud environments, improving security and resilience.
Following the completion of the transaction, VMware shares ceased trading on the New York Stock Exchange (NYSE).
Broadcom shares experienced a slight dip of less than 1% on Wednesday after reaching an all-time high on Monday.
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