Broadcom finalises acquisition of VMware

The deal was originally set to close on 30 October, but was held up by objections from China’s foreign ministry
Chip maker Broadcom has announced that it has concluded its acquisition of VMware, finalising one of the most expensive tech acquisitions in history

Chipmaker Broadcom has closed its US$61bn acquisition of cloud computing firm VMware, wrapping up one of the largest deals in the technology industry.

In a statement on Tuesday, both companies said that they have received all required regulatory approvals and intended to close the acquisition on 22 November 2023. 

“Broadcom has received legal merger clearance in Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, the United Kingdom, and foreign investment control clearance in all necessary jurisdictions,” the statement said. “There is no legal impediment to closing under US merger regulations.”

And announcing the completion of the deal today, Broadcom CEO Hock Tan said the deal would enable the company to provide "best-in-class solutions for our customers, partners and the industry".

"Today I am thrilled to announce Broadcom’s successful acquisition of VMware, and the start of a new and exciting era for all of us at the company. VMware joins our engineering-first, innovation-centric team, which is another important step forward in building the world’s leading infrastructure technology company," he wrote.

"While an important moment for Broadcom, it’s also an exciting milestone for our customers around the world. And as I said when we first announced the acquisition, we can now come together and have the scale to help global enterprises address their complex IT infrastructure challenges by enabling private and hybrid cloud environments and helping them deploy an “apps anywhere” strategy. Our goal is to help customers optimize their private, hybrid and multi-cloud environments, allowing them to run applications and services anywhere."

Broadcom acquisition of VMware closes: one of the most expensive tech acquisitions in history

First announced last year, in August 2023 Broadcom and VMware announced they expected the deal to go ahead by the end of October year after it was approved by the UK’s Competition and Markets Authority.

The acquisition is one of the most expensive in history: following Dell’s US$67bn EMC deal and Microsoft’s acquisition of Activision Blizzard for US$69bn.

The clearance from the UK’s regulator followed similar legal approval in the European Union, as well as in Australia, Brazil, Canada, Israel, South Africa, and Taiwan.

The finalisation of the acquisition was reportedly held up by the Chinese regulator, but Broadcom said China had approved the acquisition with additional restrictive conditions.

According to Reuters, the Chinese regulator insisted that VMware server software should work with local hardware and the deal should not restrict customers from purchasing and using Broadcom's hardware products such as storage adapters.

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