Broadcom expects the $69 billion deal to go through by the end of October, but China could still scupper it
The UK’s Competition and Markets Authority (CMA) has approved Broadcom’s proposed acquisition of VMware. Broadcom is paying $69 billion for the virtualization software specialist.
The companies have already gained approval for the takeover in Australia, Brazil, Canada, the European Union, Israel, South Africa and Taiwan, and the pre-merger waiting period in the US has expired, with no apparent legal impediment blocking the deal.
Although China is yet to announce its decision, Broadcom says it expects to complete by the end of October.
Earlier this week, at VMware’s Explore event in Las Vegas, Broadcom’s CEO Hock Tan gave the opening address and reiterated the promise he made in May to invest $2 billion a year in VMware after the acquisition is finalised.
Half the money will be spent on R&D, the other half accelerating the deployment of VMware solutions through VMware and partners’ professional services. This includes Broadcom investing in the expansion of VMware’s partner ecosystem.