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Broadcom, the semiconductor manufacturing giant, has announced that its acquisition of cloud-computing firm VMware, worth $61 billion, has been completed after being under the scanner of regulators for months. The company has received all necessary approvals, including added restrictions from China.
The deal, which was announced in May 2022, was one of the largest deals globally.However, the transaction faced rigorous regulatory scrutiny worldwide, leading to the delay of the closing date three times.
China granted regulatory approval, on Tuesday, easing concerns among some investors that the company might not be able to close the deal before the November 26 deadline due to the ongoing tensions with the US over stricter chip export control measures.
The European Commission approved Broadcom’s acquisition of Marvell Technology after Broadcom offered remedies. The UK’s Competition and Markets Authority also approved the acquisition following an in-depth investigation.
“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,” the company said. “We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams.”
The approval from Chinese regulators comes with some terms and conditions. With its entry into the Chinese market, Broadcom will have to ensure that VMware’s server software is interoperable with rival hardware, according to China’s regulator.
VMware will now operate under four specialized divisions. Krish Prasad will lead the VMware Cloud Foundation, Purnima Padmanabhan will head Tanju, Sanjay Uppal will manage the software-defined edge division, and Umesh Mahajan will direct the application networking and security division.
Former VMware CEO Raghu Raghuram has transitioned to serve as a technical advisor to Broadcom CEO Hock Tan. Ricky Cooper has taken on the role of Vice President of OEM sales, responsible for managing partner incentives across the newly established divisions.
The deal, which was announced in May 2022, was one of the largest deals globally.However, the transaction faced rigorous regulatory scrutiny worldwide, leading to the delay of the closing date three times.
China granted regulatory approval, on Tuesday, easing concerns among some investors that the company might not be able to close the deal before the November 26 deadline due to the ongoing tensions with the US over stricter chip export control measures.
The European Commission approved Broadcom’s acquisition of Marvell Technology after Broadcom offered remedies. The UK’s Competition and Markets Authority also approved the acquisition following an in-depth investigation.
“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,” the company said. “We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams.”
The approval from Chinese regulators comes with some terms and conditions. With its entry into the Chinese market, Broadcom will have to ensure that VMware’s server software is interoperable with rival hardware, according to China’s regulator.
VMware will now operate under four specialized divisions. Krish Prasad will lead the VMware Cloud Foundation, Purnima Padmanabhan will head Tanju, Sanjay Uppal will manage the software-defined edge division, and Umesh Mahajan will direct the application networking and security division.
Former VMware CEO Raghu Raghuram has transitioned to serve as a technical advisor to Broadcom CEO Hock Tan. Ricky Cooper has taken on the role of Vice President of OEM sales, responsible for managing partner incentives across the newly established divisions.
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