/cloudfront-us-east-2.images.arcpublishing.com/reuters/ORGNWR6Y2JKP7FUN4OXCTTX56I.jpg "Broadcom plans to close deal with VMWare worth billion on Wednesday")
[1/2]Clouds and 3D printed figures are seen in front of the VMware cloud service logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration Acquire license rights
Nov 21 (Reuters) – Broadcom (AVGO.O) said it planned to close its $69 billion acquisition of cloud computing firm VMWare (VMW.N) on Wednesday, closing one of the largest acquisition deals in the technology industry that was closely examined. by regulators worldwide.
The chipmaker has now received all regulatory approvals for the purchase after China approved the acquisition with additional restrictive conditions on Tuesday, it said.
VMWare server software should run on local hardware and the deal should not prevent customers from purchasing and using Broadcom hardware products such as storage adapters, the Chinese regulator said in a statement.
Some investors in the companies had feared the outcome of the deal after reports last month that rising tensions between China and the United States could lead China’s regulator to scuttle the deal.
Tensions between Beijing and Washington rose after the Biden administration introduced stricter controls on high-end chip exports to China in October.
Broadcom shares fell more than 1%, while VMware fell 4.6%. The deal was previously expected to close on November 26.
Brokerage Bernstein attributed the stock’s moves to some technical impacts from arbitrage trading around the deal.
Reporting by Zaheer Kachwala and Harshita Mary Varghese in Bengaluru and Twinnie Siu in Hong Kong; Editing by Anil D’Silva and Shounak Dasgupta
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