Computer chipmaker Broadcom has finally closed the deal in a $69bn acquisition of cloud computing firm VMware, on Wednesday. This has been denoted as the biggest takeover deal in the technology sector. Yet, the deal has been scrutinized by regulators around the world after the last clearance came from China. Many have shown their concerns that this deal could be affected by US-China tensions. The deal will be finalized on 26th November 2023.

Following the approval, there was a meeting between Presidents Joe Biden and Xi Jinping at the APEC summit in the US last week. Broadcom is an American company; its headquarters are in San Jose, California. The company designs, develops, and supplies semiconductor computer chips and also offers infrastructure software solutions.

On the other hand, VMware is also an American company with headquarters in Palo Alto, California. This company develops virtualization software. This software allows a user to run a virtual computer on a physical computer, and this increases the efficiency of the computer.

Hock Tan, Broadcom’s president and chief executive officer, acknowledged that they have been excited to bring their names together which can now build “the world’s leading infrastructure technology company”. Together, they are hoping to create private hybrid cloud environments where their users can run applications “anywhere”.

The close this deal, Broadcom had to seek and receive legal merger clearances in various parts of the world including Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, and the UK. According to VMWare, the Company shares will now cease to be traded on the New York Stock Exchange (NYSE).

There were speculations that the US and China’s ongoing tension might be affecting the deal. These two giants of world politics have been engaged in a trade war since 2018. It started when former president Donald Trump imposed tariffs and other trade barriers on China. Last month, China hit back by imposing new restrictions on their exports weakening Biden administration’s decision.

Advanced chips are used everywhere from cars, and Smartphones to fighter jets. This wide range of usage has made advanced chips the most recent hot commodity. And once the leaders met during the APEC summit, they came to an agreeable situation to make this deal possible. They have also discussed various subjects, from their ways of tackling climate change together to resuming military communication between the two countries.

Even though, President Biden stated President Xi was “a dictator” China’s state-owned media hailed it as a “historic” summit. And this meeting would be a “new starting point” for the relationship between China and America.

In 2017, the firm announced its largest-ever takeover deal for rival Qualcomm. But it didn’t materialize on time. Four months after the announcement, it was blocked by Mr. Turmp after US national security officials warned that the deal could help China overtake America in the race to develop 5G technology. A few weeks after that, Broadcom decided to relocate from Singapore to the US.

Phillip Goodwin

Phillip Goodwin graduated in 2007 from reputable University majoring in Economics and Accounting. In the past years, he has gathered an immense amount of experience and written for other financial sites and published independent investment research, primarily on initiative companies and new entrepreneurs. He has been working in the writing industry for the last 4 years. He has a motivational persona and trains staff on the finer points of writing, editing and getting the news out on time. Address:  1635 Rainbow Road Arcadia, CA 91006,Unites states of America Contact Number:  (+1) 626-254-4709 Email: [email protected]