Broadcom Inc. (AVGO) announced on Tuesday that it finalised its acquisition of VMware Inc. and that the company’s shares will no longer trade on the New York Stock Exchange (NYSE).
Hock Tan, the president and chief executive officer (CEO) of Broadcom, said in the company’s press release:
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.
The $69bn deal is one of the biggest in the international tech arena and became public knowledge in May 2022. This announcement triggered worldwide regulatory scrutiny, starting a lengthy back-and-forth before obtaining the go-ahead from China and the European Commission.
China gave its stamp of approval on Tuesday, which effectively dotted and crossed all requirements. Financial analysts posit that the positive interactions between US President Joe Biden and China’s President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) conference contributed to the finalisation of this long-awaited acquisition.
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Broadcom is a semiconductor developer and manufacturer and aims to expand its international software footprint with the VMware deal. It specifically wants to create and modernise its private and hybrid cloud environments.
Financial watchdogs, such as the US Federal Trade Commission, have been closely monitoring big tech mergers in light of competition concerns. The Broadcom-VMware acquisition may pave the road for smoother, streamlined deals of this nature in future. Others, however, remain sceptic.
