It was recently revealed thatCompletion of VMware acquisition may be delayedBroadcom earlier stated after the news that the deal would be completed soon. However, given that the acquisition was previously scheduled to be completed before the end of Broadcom's fiscal year 2023, it is clear that the transaction will be delayed.
Broadcom's $610 billion acquisition of VMware has already received approval from regulators in the European Union, Australia, Brazil, Canada, Israel, South Africa, South Korea, the United Kingdom, and Taiwan. The US antitrust review waiting period has also ended, so Broadcom declared that there are no longer any legal obstacles to the transaction.
However, due to the recent stricter export controls on high-end technologies imposed by the US government to China, the Chinese government is considering delaying approval of Broadcom's acquisition of VMware. Therefore, many believe that Broadcom's acquisition may be restricted by the Chinese government.Intel acquires Tower Semiconductor for $54 billionIt was also because the Chinese government was slow to agree to approve it that the acquisition ultimately ended in failure.
In a previous statement, Broadcom CEO Hock Tan saidConfident in completing the acquisition of VMware, and VMware CEO Raghu Raghuram also said at a recent event in Singapore that there will be further news as early as the end of October.
However, according to current public statements, Broadcom still emphasizes that it will complete the acquisition of VMware as soon as possible, and expects to close the transaction before the end of fiscal year 2023. However, considering it is already the last day of Broadcom's fiscal year 2023, it is clear that the completion of the transaction will be delayed. Given the current market conditions, Broadcom may choose to divest its Chinese market business or seek other means to complete the transaction.
