Broadcom (AVGO.O) said it hoped to finalize its acquisition of cloud computing company VMWare (VMW.N) on Wednesday. This would close one of the most significant merger and acquisition deals in the technology industry’s history and would be subject to scrutiny by authorities worldwide.
The chipmaker claimed that after China accepted the acquisition earlier on Tuesday but with additional restrictive terms, it now has all regulatory approvals for the deal.
According to a statement released by the Chinese regulator, VMWare server software should be able to integrate with local hardware, and the deal should not prohibit users from acquiring and using Broadcom’s hardware products, such as storage adapters.
Following the news from the previous month stating that escalating tensions between China and the United States could force China’s regulator to scuttle the purchase, several company investors had feared the result of the deal.
After the introduction of stricter curbs on exports of high-end electronics to China in October by the administration of former Vice President Joe Biden, tensions between Beijing and Washington began to rise.
Shares of Broadcom fell by more than one percent, while shares of VMware fell by 4.6%. The conclusion of the transaction had been anticipated to take place on November 26.
Brokerage Bernstein attributed the share movements to some technical impacts from arbitrage trading surrounding the deal.
