Broadcom finally closes $69 billion acquisition of VMware
After months of regulatory hurdles, Broadcom has officially finalized its $69 billion acquisition of cloud-computing firm VMware. This long-awaited deal was met with opposition from various regulatory bodies across the world, causing delays in its completion.
With the most significant market of concern being China, where tensions between the US and China sparked fears about the deal’s closure before the Nov. 26 deadline. However, following the improved relations between the Chinese President and US President earlier this month, the roadblocks were cleared, leading to the finalization of the acquisition.
Europe’s regulatory bodies had given their approval after Broadcom offered remedies to help a rival company, and the UK’s regulatory authority had also given its green light following a thorough investigation.
As the deal concluded, Broadcom is expected to usher in a new era in the chipmaker’s software business, and the renewed possibility of tech mergers. However, Big Tech mergers are still facing heightened regulatory pressure, including those such as Microsoft’s recent acquisition of Activision.
Throughout this process, renowned financial analyst Danni Hewson expressed her views, stating that this deal’s conclusion could trigger other major companies to move forward with similar plans.
Reporting by Harshita Mary Varghese; Editing by Sriraj Kalluvila