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    You are at:Home»Acquisitions»Broadcom’s mega $61B VMware deal closes

    Broadcom’s mega $61B VMware deal closes

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    By Tapiwa Matthew Mutisi on November 23, 2023 Acquisitions, Business, Deals, Manufacturing, Merger, News, Press Release, Regulation, Report, Software

    Broadcom’s mega $61 billion VMware acquisition has closed following considerable scrutiny by regulators, the company announced in a press release. With China recently granting approval for the acquisition with added restrictions, the network chip manufacturer had secured all the required approvals.

    The company said;

    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. We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams.

    The Broadcom/VMware deal lacked the glamour of tech’s other mega acquisition involving Microsoft and Activision. However, San Jose-based Broadcom’s products form the structure of much of the internet, as they’re widely used for data centers, cloud providers and network infrastructure.

    VMware, meanwhile, makes virtualization and cloud computing software that allows corporations to safely link local networks with public cloud access.

    That made VMware a logical target for Broadcom, but it also placed the acquisition in the crosshairs of regulators in multiple regions. The European Commission, for one, was concerned that Broadcom could harm competition by limiting interoperability between rival hardware and VMware’s server virtualization software.

    It also worried the company could either prevent or degrade access to VMware’s software, or bundle VMware with its own hardware products.

    European Commission approves Broadcom’s $61B VMware acquisition

    Broadcom gained EU approval for the deal in the summer though, mainly by providing IP access and source code for key network fiber optic components to its main rival, Marvell. The EU also concluded that fears of VMware bundling were unfounded and that Broadcom would still face competition in the storage adapter and NIC markets.

    There were also concerns that tensions between China and the US could scuttle the deal, after the Biden administration announced new rules in October making it harder to export high-end chips to China.

    However, approval in that market was announced yesterday, with conditions imposed by China on how Broadcom sells products locally. Namely, it had to ensure that VMware’s server software was interoperable with rival hardware, China’s regulator said in a statement.

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    Acquisition acquisitions Broadcom Business China deals manufacturing Press Release Regulations software Technology US VMWare
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    Tapiwa Matthew Mutisi
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    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

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