The EU earlierAnnounceAgreed to Broadcom's acquisition of VMware for US$610 billion, but required Broadcom not to merge VMware with its existing software business. At the same time, it must ensure that VMware's service functions are compatible with third-party server equipment to avoid market monopoly.
Broadcom later stated that in addition to receiving approval from the EU for its VMware acquisition, it has also received approval in Australia, Canada, South Africa, and other countries and regions. However, Broadcom still needs approval from the US Federal Trade Commission and the UK Competition and Markets Authority to successfully complete the acquisition of VMware.
If Broadcom successfully completes its acquisition of VMware, it will be a major tech acquisition, second only to Microsoft's $687 billion acquisition of Activision Blizzard and Dell's $670 billion acquisition of EMC. The VMware acquisition is expected to generate significant profits for Broadcom, potentially offsetting losses from its failed acquisition of Qualcomm in 2018.
According to Broadcom's previous statement, it will acquire all of VMware's external shares for US$610 billion, of which US$320 billion will be obtained through bank consortium financing. It will also take over VMware's approximately US$80 billion in debt. Existing VMware shareholders will be able to choose to sell their shares at US$142 per share or choose to exchange each share for 0.2520 shares of Broadcom stock.
