Chipmaker Broadcom completes $69bn deal to buy VMware

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Computer chipmaker Broadcom has completed its $69bn (£55bn) acquisition of cloud computing firm VMware, wrapping up one of the biggest takeover deals in the technology sector.

The regulatory approval for the deal between Broadcom and VMware was obtained after careful scrutiny by regulators worldwide, with a final clearance from China raising concerns amid US-China tensions. The approval comes following a meeting between Presidents Joe Biden and Xi Jinping at the Apec summit in the US last week. Broadcom, based in San Jose, California, specializes in designing and supplying semiconductor chips, while VMware, headquartered in Palo Alto, California, focuses on developing virtualization software. Broadcom’s President and CEO, Hock Tan, expressed excitement about building “the world’s leading infrastructure technology company” by bringing their teams together. The companies aim to create private and hybrid cloud environments for running applications anywhere.

The deal has received legal merger clearances in various countries, including China, the European Union, the UK, and others. Following the completion of the deal, VMware shares will cease trading on the New York Stock Exchange. The US and China, engaged in a trade war since 2018, have faced challenges, especially regarding advanced chips. The Apec summit allowed Presidents Biden and Xi to find common ground on issues like climate change and military communication, despite existing tensions. Broadcom previously faced complications in a 2017 takeover deal for Qualcomm, which was blocked by then-US President Donald Trump over national security concerns, leading Broadcom to relocate to the US from Singapore.

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