Broadcom Acquires Vmware For $61 Billion By CIOTechOutlook Team

Broadcom Acquires Vmware For $61 Billion

CIOTechOutlook Team | Friday, 24 November 2023, 02:48 IST

Broadcom has announced the completion of its $61 billion acquisition of cloud computing business VMware, which had been under regulatory scrutiny for months. The corporation has gained all relevant permits, including new Chinese limitations.

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, as per TOI.

China awarded regulatory permission, relieving investor fears that the business would not be able to finalize the purchase by the November 26 deadline owing to continued tensions with the US over tighter chip export control procedures.

Broadcom's purchase of Marvell Technology was authorized by the European Commission after Broadcom submitted remedies. Following an extensive inquiry, the UK's Competition and Markets Authority also authorized the transaction.

"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 permission from Chinese regulators is subject to certain restrictions. According to China's regulator, Broadcom will have to verify that VMware's server software is compatible with competing hardware when it enters the Chinese market.

VMware will now operate in four distinct segments. Krish Prasad will oversee the VMware Cloud Foundation, Purnima Padmanabhan will oversee Tanju, Sanjay Uppal will oversee the software-defined edge division, and Umesh Mahajan will oversee application networking and security.