Broadcom-VMware deal expected to close in October after UK gives the nod

Clearing the UK regulator was the final hurdle

Broadcom-VMware deal expected to close in October after UK gives the nod

Broadcom says it is now set to acquire VMware for $61 billion on Oct. 30, 2023, after the deal received the green light from UK regulators on Monday.

"[Broadcom] today affirmed its expectation that its acquisition of VMware will close on October 30, 2023," the company said in a release.

The California-based technology giant said it received final transaction approval Monday from the UK's Competition and Markets Authority (CMA). This follows legal merger clearance in the European Union, as well as in Australia, Brazil, Canada, Israel, South Africa and Taiwan, and foreign investment control clearance in all necessary jurisdictions.

"In the US, the Hart-Scott-Rodino pre-merger waiting periods have expired, and there is no legal impediment to closing under US merger regulations," said Broadcom

The market showed a positive response to Broadcom's announcement, with Broadcom and VMware shares rising after the announcement and continuing to increase thereafter.

Broadcom said it continues to work "constructively" with regulators in other jurisdictions and is in the "advanced stages" of obtaining the remaining required regulatory approvals, which Broadcom believes will be received before 30th October 2023.

VMware-Broadcom history

In May 2022, Broadcom unveiled its $61 billion bid for VMware.

At the time, the companies had a combined 55,000 employees and a market capitalisation of $267 billion.

The planned acquisition stalled on several occasions over the past 15 months as the companies sought regulatory approvals. Several geographic regions feared Broadcom may use its control of VMware to harm rivals and the market.

However, it now appears those issues are nearly resolved.

"Broadcom is confident that the combination with VMware will enhance competition in the cloud and benefit enterprise customers by giving them more choice and control over where they locate their workloads," Broadcom said on Monday.