June 16, 2024

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Broadcom Receives the Nod of Regulators to Acquire VMWare for $69 Billion

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BNN news today

After receiving the approval of the regulators, Broadcom took over VMWare in a deal valued at $69 billion on Wednesday. With this takeover, the company will establish a footprint in the fiercely competitive cloud computing market. The technology of VMWare allows large corporations to establish cloud connectivity with internal company networks.

In the latest BNN news today, the San Jose, CA-based company said it completed the deal after China joined the list of regulators that gave the nod for the takeover of Cloud Technology Company. VMWare maintains good relations with major cloud providers and companies like Microsoft, Google, and Amazon.

Received legal approvals in nations across the world

In a statement, Broadcom said it already received legal approvals in various nations across the world, like Japan, Israel, Canada, Brazil, Australia, South Korea, the UK, Taiwan, South Korea, the European Union, China, and South Africa. It also received clearance for foreign investment control in all the required jurisdictions. It further claimed that there are no complications to completing the deal under the merger regulations in the US.

Forced to delay the closing date for the deal three times

Broadcom, led by Hock Tan, the CEO, announced the deal in May 2022 to improve its software business. However, it was forced to delay the closing date for the deal three times because of tough regulatory scrutiny worldwide.

Broadcom received the approval of Chinese regulators on Tuesday amid prevailing tensions between China and the US over stricter chip export control measures. Some of the investors feared about the company’s capability to close the deal before the November 26 deadline.

In the latest World News from BNN, the Head (Financial Analysis) of AJ Bell, Danni Hewson, said on Tuesday that the closing of the deal is on the backdrop of a positive mood after a conference between President Xi Jinping of China and Joe Biden, the President of the US, earlier this month that helped settle the nerves.

Receives the nod of the regulators in the EU 

Broadcom received the approval of the regulators in the EU for the deal after it offered a remedy to help Marvell Technology, its competitor. The nod is also on the backdrop of a green signal from the CMA (Competition and Markets Authority) in the UK after concluding a detailed investigation.

On Tuesday, the market strategist at JonesTrading, Cabot Henderson, said some of the boards may move forward as we have seen VMWare and Activision Blizzard get the blessing. Jones further mentioned apprehension about this moving forward.

Raghu Raghuram bids farewell

Raghu Raghuram, the former CEO of VMWare, bid farewell to his colleagues. He will now work as a technical advisor to the CEO of Broadcom, Hock Tan. Ricky Cooper, the channel chief at VMWare, will now act as Vice President (OEM Sales) and report to Hock Tan.

Commenting on the close of the deal on Wednesday, Hock Tan is pleased to welcome VMWare into the arms of Broadcom. Tan further stated that the deal would help to bring the innovation-centric teams together and make a big step in developing a leading infrastructure technology company in the world. Following the close of the deal, Broadcom apportioned the VMWare into four groups, each headed by a general manager.

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