UPDATE 1-Broadcom plans to close $69 billion VMWare deal on Wednesday

(Adds deal background in paragraphs 2-4; shares in paragraph 5)

Nov 21 (Reuters) – Broadcom said it planned to close its $69 billion acquisition of cloud computing firm VMWare 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)

Source link

Leave a Comment