It been going to and fro for some time now, but it looks like this saga has finally come to a close. Broadcom, who has been trying to takeover VMware, was finally granted regulatory approval in China, and to this effect, the deal has been closed for a respectable $69 billion. Broadcom made their intentions known back in May 2022, and after that, it was just a to and fro as the company waited to complete their due diligence and received regulatory approval from the concerned authorities.
November 22 is when the deal was finalised and the deal is now set in stone. There was speculation that the rocky relations between the USA and China may put a spanner in the works, especially since the deadline to complete this deal was November 26, but it looks like that is no longer the case, and the two parties can now take things further as one entity.
“We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams as we take another important step forward in building the world’s leading infrastructure technology company.”, said Hock Tan, Broadcom’s President and CEO.
The only stipulation that is place is that China specifically asked that the merger should not abuse the market position, and that this partnership will allow for the interoperability between VMWare’s servers and that of third-party hardware providers. This little condition is not surprising as companies are being placed under scrutiny for exploiting partnerships and also using each others’ pull in the market to tilt market positions in their favour, which constitute unfair practise. Broadcom would be wise to respect this stipulation, as negligence to do so will attract some major fines across the world.
You can read more about the takeover here – Click Here
