Broadcom: VMware Purchase Expected To Close Oct. 30 After Clearing UK Regulators
Broadcom says it is now set to acquire VMware for $61 billion on Oct. 30, 2023, after the deal received the green light from UK regulators Monday.
Following regulatory approval in the U.K. Monday and effective approval in the U.S., Broadcom affirmed that it plans to officially acquire VMware for $61 billion on Oct. 30.
“[Broadcom] today affirmed its expectation that its acquisition of VMware will close on October 30, 2023,” the company said in a release.
The San Jose, Calif.-based technology giant said it received final transaction approval Monday from the United Kingdom’s Competition and Markets Authority. This follows legal merger clearance in the European Union, as well as in Australia, Brazil, Canada, Israel, South Africa and Taiwan, and foreign investment control clearance in all necessary jurisdictions.
“In the U.S., the Hart-Scott-Rodino pre-merger waiting periods have expired, and there is no legal impediment to closing under U.S. merger regulations,” said Broadcom.
Broadcom Stock, VMware Shares Rise
The market showed a positive response to Broadcom’s announcement as Broadcom and VMware shares increased Monday morning.
Broadcom’s shares (NASDAQ: AVGO) are trading at $845.72 per share Monday, up 2.5 percent.
Broadcom said it continues to work “constructively” with regulators in other jurisdictions and is in the “advanced stages” of obtaining the remaining required regulatory approvals, which Broadcom believes will be received before Oct. 30, 2023.
In May 2022, Broadcom unveiled its $61 billion bid for Palo Alto, Calif.-based VMware.
At the time, the companies had a combined 55,000 employees and a market capitalization of $267 billion.
The planned acquisition stalled on several occasions over the past 15 months as the companies sought regulatory approvals. Several geographic regions feared Broadcom may use its control of VMware to harm rivals and the market.
However, it now appears those issues are nearly resolved.
“Broadcom is confident that the combination with VMware will enhance competition in the cloud and benefit enterprise customers by giving them more choice and control over where they locate their workloads,” Broadcom said Monday.
VMware’s flagship conference, VMware Explore 2023, is taking place this week in Las Vegas. VMware Explore runs from Aug. 21 to Aug. 24 with CRN having full coverage at the event where Broadcom will be top of mind for channel partners and customers.