Broadcom says that it is almost ready to fully strike the $61 billion bargain on VMware acquisition, which is in fact the third largest deal of the kind after the cases of Dell acquiring EMC for $67 billion and Microsoft acquiring ActiBlizz for $68,7.
The Broadcom/VMware deal was already announced in May 2022, with the intention to close it in 2023.
VMware stakeholders will get $142,50 which is 0.2520 shares of Broadcom for each VMware share. This is 44% higher than the price of VMware shares in May when the acquisition was announced and 32% higher of the average price. Besides these $61 billion dollars, VMware will de facto also receive an additional $8 billion of their debts which will be covered by Broadcom.
On October 30, Broadcom issued a statement of reassurance that the deal would be finished soon, complying with the terms posed by the agreement, particularly the deadline at the end of November. The goal of this statement was to calm down the investors worried about the postponement of the deal due to the Chinese regulators, being the last who haven’t approved the deal yet. However, the statement didn’t contain any substantial updates on the general state of affairs. According to the Financial Times, Chinese anti-monopoly regulators might need additional time to approve the agreement with an eye on the USA’s sanctions on chip export.
The deal is very important for Broadcom with the potential to define its whole further development giving a series of advantages over its competitors.