Broadcom completes VMware acquisition after Chinese approval

The semiconductor giant Broadcom (NASDAQ:) Inc. has finalized its acquisition of cloud computing and virtualization technology company VMware (NYSE:), Inc., following the green light from Chinese regulatory authorities. The deal, valued at $69 billion, marks a significant consolidation in the tech industry.

According to GlobalData analysts, the protracted regulatory process had cast a shadow of uncertainty over VMware’s business dealings, particularly within the cybersecurity space. This uncertainty may continue to impact VMware’s cybersecurity transactions even after the acquisition’s completion.

The merger between Broadcom and VMware was first announced in May, signaling Broadcom’s ambition to expand into enterprise software solutions. However, the months-long scrutiny by regulators has taken a toll on VMware’s market standing and valuation.

The acquisition comes amid intense competition within the cybersecurity sector, with companies like Cisco Systems (NASDAQ:) pushing for more robust “zero trust” security frameworks to protect against cyber threats.

This month’s Asia-Pacific Economic Cooperation (APEC) summit featured discussions between U.S. President Joe Biden and Chinese President Xi Jinping, which may have played a role in accelerating the approval process for Broadcom’s takeover of VMware.

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