Takeaways
- Broadcom finally completed its $69 billion purchase of VMware after approval from Chinese regulators.
- The deal had been delayed by officials concerned about potential impacts on competition.
- Broadcom shares were down after hitting an all-time high on Monday.
It took a year and a half, but Broadcom (AVGO) finally acquired rival software company VMware (VMW).
The conclusion of the agreement of $69 billion, first announced in May 2022, had been delayed three times by regulators fearing the tie-up would reduce competition. The latest approval came yesterday when Chinese authorities gave the green light.
Some feared the deal would be not concluded due to tensions between the United States and China over President Joe Bide's new export sanctions on technology products. Those tensions eased somewhat last week when President Biden met with Chinese leader Xi Jinping at an economic cooperation conference in California.
Broadcom CEO Hock Tan explained The combined company will “enable global enterprises to adopt private and hybrid cloud environments, making them more secure and resilient.”
Once the transaction is completed, VMware shares ceased trading on the New York Stock Exchange (NYSE).
Broadcom shares have less fell only 1% on Wednesday. They reached a record level on Monday.
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Source: investopedia.com
