Broadcom’s troubled acquisition of virtualization juggernaut VMware has cleared the final regulatory hurdle and will close as soon as tomorrow after China gave the transaction the green light.
VMware announced today the $69 billion purchase is proceeding with just days to go before the merger agreement between the two companies was set to expire on November 26.
Broadcom has now received legal merger clearance in multiple countries including the European Union and the UK, and foreign investment control clearance in all necessary jurisdictions, according to VMware.
There is no legal impediment to closing under US merger regulations, it added, a presumed reference to Broadcom's previous statement that pre-merger waiting periods under the Hart-Scott-Rodino Act had expired, and as no objections were raised by the Federal Trade Commission (FTC), there was nothing in US law to prevent the sale going ahead.
The cliffhanger was over Beijing’s approval of the deal. China's State Administration for Market Regulation (SAMR) had remained resolutely silent on whether it would give its consent for the transaction to proceed, or whether it would sabotage the merger in retaliation for US export restrictions and sanctions that have been imposed on Chinese companies.