Chipmaker Broadcom Finalizes $69bn Deal To Purchase VMware

The approval follows a meeting between Presidents Joe Biden and Xi Jinping at the APEC summit in the US last week.

Chipmaker Broadcom Finalizes $69bn Deal To Purchase VMware

Broadcom has finalized its $69 billion (£55 billion) acquisition of cloud computing giant VMware, completing one of the largest takeover deals in the technology sector.

Before receiving final approval from China, the merger was reviewed by regulators all over the world.

There were fears that it would be harmed by US-China relations.

The decision comes after Presidents Joe Biden and Xi Jinping met at the APEC conference in the United States last week.

Broadcom, located in San Jose, California, designs, develops, and sells semiconductor devices, as well as infrastructure software solutions.

VMware, another American firm headquartered in Palo Alto, California, creates virtualization software that allows a user to run a virtual computer on a real computer in order to boost the computer system's efficiency.

Hock Tan, Broadcom's president and CEO, stated that they were eager to bring their teams together to establish "the world's leading infrastructure technology company."

They intend to develop private and hybrid cloud environments where users may run "apps anywhere" by working together.

To execute the transaction, the business obtained legal merger permissions in Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, and the United Kingdom.

According to the firm, VMWare shares would no longer be traded on the New York Stock Exchange (NYSE).

Since 2018, when then-US President Donald Trump imposed tariffs and other trade obstacles on China, the US and China have been at odds.

The most recent hot item has been advanced chips, which are used in everything from vehicles to cell phones to fighter planes.

Last month, China reacted angrily to the Biden administration's plan to impose fresh export curbs.

However, the two leaders who met during the Apec summit were able to reach an agreement on a number of subjects, including addressing climate change jointly and restarting military contact.