Broadcom
plans to close on its merger with
VMware
on Wednesday after getting conditional approval for the deal Tuesday from China’s antitrust regulator.
China’s State Administration for Market Regulation, or SAMR, issued a statement granting the conditional approval Tuesday. It was the final global regulator that needed to OK the deal, which Barron’s estimates is now valued at over $80 billion. This would make the transaction one of the largest technology mergers ever.
In a press release Tuesday, the two companies said they “have received all required regulatory approvals and intend to close Broadcom’s acquisition of VMware on November 22, 2023.”
Shares of both Broadcom and VMware are lower in premarket trading. Broadcom is down 3.6% to $959.76 while VMware is off 4.6% to $142.95.
VMware is lower because the merger consideration for current buyers of the stock is $142.50 in cash, according to risk arbitragers and Barron’s reading of Broadcom’s news releases and regulatory statements.
VMware stock had traded above that level recently as some investors bet that the merger election period could be reopened after ending on Oct. 23. A reopening could have allowed current buyers to get a price above $142.50 a share.
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