Beijing weighs delaying approval of $69 bln Broadcom-VMware deal- FT (updated)

VMware

19/10/2023 08:35

(Adds details from FT report in paragraph 2, adds background in
paragraphs 3-4)
       Oct 19 (Reuters) - Beijing is weighing holding up US
chipmaker Broadcom Inc's  AVGO.O  $69 billion purchase of cloud
computing company VMware Inc  VMW.N , the Financial Times
reported on Thursday. 
    China's State Administration of Market Regulation has not
signed off on the deal and is likely to delay approving the
transaction after US President Joe Biden's administration
introduced tougher chip controls on Tuesday, the report added,
citing people familiar with the matter. 
    VMWare and Broadcom did not immediately respond to Reuters
request for comment. China's State Administration of Market
Regulation could not immediately be reached for comment. 
    Broadcom said in May 2022 it would acquire VMware in a deal
consisting of $61 billion in equity and the rest in debt, the
chipmaker's biggest and boldest bid to diversify its business
into enterprise software.
   
        
  

 (Reporting by Gursimran Kaur in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((GursimranKaur.Mehar@thomsonreuters.com;))