Broadcom will buy VMWare for $61 billion after China approves

China has approved the acquisition of cloud software company VMware by US microchip manufacturer Broadcom for about $61 billion (55.873 million euros).

Beijing’s decision means the final hurdle to the multi-million dollar operation, which will end on Wednesday, has disappeared.

The company confirmed in a statement that, with the approval of Chinese regulatory authorities, “He has already obtained all approvals.” Necessary and that there are no longer legal obstacles to closing the deal, which it intends to do on Wednesday, November 22.

The transaction, announced in May 2022, will include the purchase of VMWare for $61 billion, as well as Broadcom assuming another $8 billion in debt from the acquiring company, which will increase the company’s total cost by about $8 billion. 69 billion dollars.

China’s State Administration for Market Regulation (SAMR) revealed on its website that it had approved the process, although there were conditions such as a commitment that the VMWare server software be compatible with Chinese hardware or that The agreement should not impose restrictions on customers in the Asian country to purchase and use Broadcom products As storage converters.

Some investors fear that the acquisition will not be approved by the Asian giant because…Tensions between the United States and China, Especially after stricter controls were imposed on high-end chip exports to China in October.

Last July, the European Commission approved the purchase of VMware from Broadcom, although it also imposed its own operating conditions.

Brussels confirmed after an investigation that began in December last year that the deal could have had negative effects on competition in the global market for the supply of fiber host adapters (FC HBAs) if it had been implemented as planned.