Broadcom, a company that produces computer chips and software, has stated that it has successfully passed all necessary regulations and intends to finalize its purchase of VMware, a cloud technology company, on Wednesday for a total of $69 billion.

The corporation, located in San Jose, California, declared its intention to proceed with the agreement once China approved the acquisition.

Broadcom is acquiring VMware for a total value of $69 billion, including a combination of cash and stock, and assuming $8 billion of the company’s debt. This transaction is considered one of the largest in the history of technology deals.

The news was revealed shortly after Microsoft purchased the video game company Activision Blizzard for a whopping $69 billion, making it one of the largest and priciest tech takeovers to date.

Broadcom received all necessary regulatory approvals just days before the merger agreement was set to expire, a process which took 18 months.

The purchase was able to proceed following an announcement from China’s State Administration of Market Regulation that Broadcom’s submitted commitments on Monday would lessen the effects of the merger.

The significant acquisitions are taking place during a period of increased unease due to disruptions in the global supply chain, conflicts in Europe and the Middle East, and escalating prices that could dampen economic and consumer behavior.

The British competition regulator has approved Broadcom’s acquisition plan.

Numerous companies and government entities, such as prominent financial institutions, large-scale retailers, telecommunication companies, and government agencies, depend on Broadcom equipment and VMware technology. The European Commission, which oversees antitrust regulations in the EU, approved the merger after Broadcom offered solutions to alleviate concerns about potential competition issues.

Broadcom aims to solidify their position in the cloud computing industry by leveraging VMware’s technology, which enables enterprises to seamlessly integrate public cloud services and their internal networks. Headquartered in Palo Alto, California, VMware has strong partnerships with all leading cloud companies and providers, such as Amazon, Google, and Microsoft.

Broadcom announced that it has obtained legal approvals 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 relevant jurisdictions.

The statement declared that there are no legal barriers preventing closure based on U.S. merger regulations.

There has been a surge of these types of agreements following the decline in technology companies’ stock prices, which reached astronomical heights during the pandemic. This has made these purchases more within reach.

However, Hock Tan, the CEO of Broadcom, has been actively seeking such agreements for several years, expanding the company through significant purchases such as the approximately $11 billion acquisition of Symantec in 2019 and the approximately $19 billion acquisition of CA Technologies the year prior.

During a recent earnings call, Tan discussed the acquisition of VMWare as an exceptional chance to elevate our company and its operations.

Source: wral.com