Broadcom, a prominent chipmaker, is set to conclude its acquisition of cloud computing firm VMWare on Wednesday, marking the culmination of a colossal $69 billion takeover that has been under intense global regulatory scrutiny.
The company confirmed that it has secured all necessary regulatory approvals for the acquisition, including a recent nod from China with additional stringent conditions imposed just a day before the slated closure.
Speculations had arisen among investors regarding the deal’s fate following reports last month hinting at potential hurdles due to escalating tensions between the United States and China. Concerns mounted as the Joe Biden administration implemented stricter controls on the export of high-end chips to China in October, intensifying the already strained relations between the two economic powers.
Both Broadcom and VMware witnessed a downturn in their shares, with each dropping over 3 percent in premarket trading. Originally anticipated to be finalized by November 26, the completion of this landmark deal marks a significant milestone in the technology industry, despite the challenges posed by geopolitical tensions and regulatory scrutiny, Reuters news report said.
The closure of this acquisition is poised to reshape the landscape of cloud computing and semiconductor industries, positioning Broadcom as a major player in this ever-evolving sector.