Broadcom Acquires Cloud-Computing Company VMware

- Advertisement -
- Advertisement -

The conclusion of this deal, along with other significant tech mergers like Microsoft’s acquisition of Activision Blizzard, signals a potential shift in the regulatory landscape.

Broadcom successfully completed its $69 billion acquisition of cloud-computing company VMware on Wednesday. This significant transaction, announced in May 2022, represents one of the largest global deals in recent times and aligns with Broadcom CEO Hock Tan’s strategy to enhance the chip-maker’s software division.

The acquisition underwent intense regulatory scrutiny worldwide, leading to three postponements of the closing date. The final approval from China, a crucial market, came on Tuesday. This approval was particularly significant due to the ongoing tensions between the U.S. and China regarding stricter chip export controls, which had raised concerns about the deal’s completion before the November 26 deadline.

- Advertisement -
VMware Business Unit
Credit: VMware

Danni Hewson, head of financial analysis at AJ Bell, attributed the successful conclusion of the deal partly to the improved diplomatic relations following the recent meeting between China’s President Xi Jinping and U.S. President Joe Biden. This development eased investor concerns and facilitated the deal’s closure on November 22.

The acquisition had already received the green light from the European Commission, which sanctioned it after Broadcom agreed to provide certain concessions to competitor Marvell Technology. Additionally, the UK’s Competition and Markets Authority (CMA) approved the deal following a thorough investigation.

The conclusion of this deal, along with other significant tech mergers like Microsoft’s acquisition of Activision Blizzard, signals a potential shift in the regulatory landscape. Cabot Henderson, a market strategist at JonesTrading, suggested that this might encourage other companies to pursue similar transactions, though caution remains due to the increased scrutiny from U.S. regulatory bodies, particularly under the leadership of Federal Trade Commission Chair Lina Khan.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive

How Effective Will The Global Biofuel Alliance Be?

0
From environmental benefits to economic opportunities, the potential of biofuels in revolutionising our energy landscape. India has made history by hosting the 18th G-20 summit...
Marina

Investments In Drone Industry Decline To US$1.7 billion

0
The 2023 data now separates drone company funding from AAM/eVTOL funding, which significantly boosted the total in 2020 and 2021. Drone companies received US$1.7 billion...

“Now’s A Great Time To Make In India”

0
In news and in current affairs relevant to the current geopolitical situation, India is emerging as one of the fastest-growing electronics manufacturing services nations...

Buzz

TelioEV Expands EV Charging Solutions To Five APAC And GCC Countries

0
The company started operations in these areas in December 2023 and is currently engaging with stakeholders such as charge point operators, OEMs, EV users,...

Union Cabinet Approves CG-Led JV Proposal For OSAT Facility In Sanand

0
CG Power owns a 92.3% stake, while Renesas Electronics and Thai OSAT provider Stars Microelectronics will have 6.8% and 0.9% equity, respectively in the...

Govt Sanctions 3 Semiconductor Plants; Rs 1.26 Lakh Cr Investment

0
The Dholera (Gujarat) semiconductor fab will produce 50,000 wafers monthly. In contrast, the Morigaon (Assam) and Sanand (Gujarat) units will assemble, test, monitor, and...

Important Sectors

TelioEV Expands EV Charging Solutions To Five APAC And GCC Countries

0
The company started operations in these areas in December 2023 and is currently engaging with stakeholders such as charge point operators, OEMs, EV users,...

Union Cabinet Approves CG-Led JV Proposal For OSAT Facility In Sanand

0
CG Power owns a 92.3% stake, while Renesas Electronics and Thai OSAT provider Stars Microelectronics will have 6.8% and 0.9% equity, respectively in the...

Govt Sanctions 3 Semiconductor Plants; Rs 1.26 Lakh Cr Investment

0
The Dholera (Gujarat) semiconductor fab will produce 50,000 wafers monthly. In contrast, the Morigaon (Assam) and Sanand (Gujarat) units will assemble, test, monitor, and...

Cabinet Sanctions Rs 75,021 Cr Rooftop Solar Subsidy

0
After the Union Cabinet meeting, Information and Broadcasting Minister Anurag Thakur announced that a scheme has been approved to install rooftop solar panels and...
Tata

Tata To Start Semiconductor Fab Construction Within 100 Days

0
Additionally, Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam. The Union Cabinet chaired by Prime Minister...

Manufacturing

Union Cabinet Approves CG-Led JV Proposal For OSAT Facility In Sanand

0
CG Power owns a 92.3% stake, while Renesas Electronics and Thai OSAT provider Stars Microelectronics will have 6.8% and 0.9% equity, respectively in the...

Govt Sanctions 3 Semiconductor Plants; Rs 1.26 Lakh Cr Investment

0
The Dholera (Gujarat) semiconductor fab will produce 50,000 wafers monthly. In contrast, the Morigaon (Assam) and Sanand (Gujarat) units will assemble, test, monitor, and...

“Now’s A Great Time To Make In India”

0
In news and in current affairs relevant to the current geopolitical situation, India is emerging as one of the fastest-growing electronics manufacturing services nations...

MeitY Secretary: Domestic Semiconductor Manufacturing Is The Next Big Thing

0
At the India Digital Summit (IDS) 2024, S Krishnan, Secretary of MeitY, highlighted that India is on the brink of a major move towards...

Tata Picks Somerset For UK Battery Plant

0
The Bridgewater factory, operated by the subsidiary Agratas, will initially produce batteries for JLR and Tata Motors; with a capacity of 40GWh, it will...