Broadcom expects $69 bln VMware deal to close before November deadline

VMware

30/10/2023 14:02

Oct 30 (Reuters) - U.S. chipmaker Broadcom  AVGO.O 
expects its $69 billion buyout of cloud-computing firm VMware
 VMW.N  to close before the November deadline, the companies
said on Monday, amid investor concerns about securing China's
approval for the deal.     
    China's State Administration of Market Regulation (SAMR) has
not signed off on the deal and is likely to delay its decision,
the Financial Times reported earlier this month, after U.S.
President Joe Biden's administration introduced tougher chip
controls.
    The companies did not disclose details regarding China's
approval on Monday, but said there was "no legal impediment" to
the deal closing under U.S. merger regulations.
    Broadcom has received legal merger clearance in Australia,
Brazil, Canada, the European Union, Israel, Japan, South Africa,
South Korea, Taiwan and the United Kingdom, along with foreign
investment control clearance in all necessary jurisdictions.
    The deal, Broadcom's largest ever, received EU antitrust
approval after the company offered remedies to help rival
Marvell Technology  MRVL.O .
    Broadcom said in May last year it would buy VMware in a deal
consisting of $61 billion in equity and the rest in debt, as the
chipmaker aimed to diversify into enterprise software.

 (Reporting by Harshita Mary Varghese; Editing by Devika
Syamnath)
 ((HarshitaMary.Varghese@thomsonreuters.com;))