Broadcom plans to close $69 billion VMWare deal on Wednesday (updated)

VMware

21/11/2023 13:17

(Adds deal background in paragraphs 2-4; shares in paragraph 5)
       Nov 21 (Reuters) - Broadcom  AVGO.O  said it planned to
close its $69 billion acquisition of cloud computing firm VMWare
 VMW.N  on Wednesday, wrapping up one of the biggest takeover
deals in the technology industry that was closely scrutinized by
regulators globally.
    The chipmaker has now received all regulatory approvals for
the purchase after China approved the acquisition with
additional restrictive conditions earlier on Tuesday, it said.
        Some investors in the companies had feared about the
outcome of the deal after reports said last month that rising
Sino-U.S. tensions could lead China's regulator to scuttle the
deal.
  
        Tensions between Beijing and Washington had mounted
after the Biden administration introduced tougher controls on
exports of high-end chips to China in October.
  
    Shares of Broadcom and VMware were down more than 3% each in
premarket trading. The deal was previously expected to close by
Nov. 26.

 (Reporting by Zaheer Kachwala and Harshita Mary Varghese in
Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)
 ((Zaheer.Kachwala@thomsonreuters.com))