Broadcom to close VMware merger after securing China approval

Broadcom name and logo on a phone in front of a large Broadcom logo
(Image credit: Getty Images)

Broadcom has confirmed it plans to close its $69 billion acquisition of VMware on Wednesday after securing all necessary regulatory approvals. 

Chinese regulators approved the merger between the two firms, bringing to a close months’ worth of intense regulatory scrutiny.

The approval from China comes with limited “restrictive conditions”, the firm noted. Chinese regulators demanded Broadcom must not use the merger to abuse its market position and retain interoperability between VMware servers and alternative third-party hardware providers.

“Broadcom has received legal merger clearance in Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, the United Kingdom, and foreign investment control clearance in all necessary jurisdictions,” Broadcom said in a statement.

The chipmaker added there is now “no legal impediment” to closing the deal under US merger regulations.

Following the acquisition, Broadcom will now operate under the VMware brand.

Broadcom VMware merger: Key talking points

Broadcom’s merger with VMware rapidly became a regulatory flashpoint after it announced its intention to acquire the cloud computing giant in 2022. 

Key concerns focused on the merged entity being able to prevent products from Broadcom competitors working with VMware services, such as its server virtualization software.

Some industry stakeholders also warned the deal could harm innovation and stifle competition.

EU regulators granted permission for the merger in July after Broadcom offered European rivals interoperability commitments. In August, the UK’s Competition and Markets Authority (CMA) also cleared the merger.

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A CMA review concluded that the deal “does not substantially reduce competition”.

In recent months, geopolitical tensions between the US and China have created an additional layer of complexity and uncertainty.

Investors feared for the outcome of the deal after the Biden administration introduced more stringent controls on the export of high-end chips to China in October 2023.

Speculation began circulating that Chinese regulators could look to scupper the deal in response to the US administration’s aggressive stance on chip exports.

Ross Kelly
News and Analysis Editor

Ross Kelly is ITPro's News & Analysis Editor, responsible for leading the brand's news output and in-depth reporting on the latest stories from across the business technology landscape. Ross was previously a Staff Writer, during which time he developed a keen interest in cyber security, business leadership, and emerging technologies.

He graduated from Edinburgh Napier University in 2016 with a BA (Hons) in Journalism, and joined ITPro in 2022 after four years working in technology conference research.

For news pitches, you can contact Ross at ross.kelly@futurenet.com, or on Twitter and LinkedIn.

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