Broadcom finally completes $69bn acquisition of VMware

VMWare is now VMWare by Broadcom

Global software supplier Broadcom has successfully concluded its $69 billion acquisition of cloud-computing company VMware after securing regulatory approval in China. As of yesterday VMware operates as VMware by Broadcom.

The deal, initially announced in May 2022, stands out as one of the largest globally and aligns with CEO Hock Tan's strategy to enhance Broadcom's software business.

The acquisition encountered significant regulatory hurdles worldwide, leading to three postponements of the closing date. Notably, China's regulatory green light, received on Tuesday (21/11) was crucial, especially amid heightened tensions with the US over stricter chip export controls.

The European Commission granted approval after Broadcom proposed remedies to address issues related to rival Marvell Technology. Additionally, the UK's Competition and Markets Authority gave its approval following a thorough investigation.

"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," writes Hock Tan.

"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."

According to Reuters, analysts suggest that the successful closure of the Broadcom-VMware deal might set a positive precedent for other transactions in the market. Cabot Henderson, a market strategist at JonesTrading, noted that while the blessings received by Activision Blizzard and VMware are encouraging, it remains uncertain if other boards will follow suit.

Broadcom's acquisition of VMware has navigated a complex path of global regulatory challenges, with the resolution of issues in China serving as a pivotal moment. The positive outcome is expected to have broader implications for the market, potentially influencing the willingness of other boards to proceed with similar transactions.