The EU accepts the agreement of Broadcom and VMware for 61,000 million

In industry, larger companies often expand by acquiring smaller or similarly important ones. In the end, the objective is to expand in the sector, complementing its already strong points with those of other companies. Today it is time to talk about how the purchase agreement of VMware by Broadcom is close to closing, since now have obtained the approval of the EU.

Not long ago we were seeing the conclusion (or so we hope) of the purchase agreement of Activision Blizzard by Microsoft. This one in particular began in January 2022 and after more than a year and a half it seems that it will end. Being $68.7 billion the agreed price was the largest amount Microsoft had ever paid for a company. Curiously, now we find ourselves in a similar situation, because with a value of 61,000 million dollars, the aBroadcom’s acquisition of VMware it becomes the largest purchase in its history.

The EU is in favor of Broadcom buying VMware for 61,000 million

For those of you who don’t know it, Broadcom is an American company that designs, develops, manufactures, and supplies chips and software products. These are used in virtually every industry, from data centers, smartphones, telecommunication equipment, servers, and PCs. even own Manzana uses Wi-Fi cards that have a chip broadcom.

This company already has a certain path if we talk about acquisitions. In 2017 he wanted to buy Qualcomm for an incredible number of 130,000 million dollars, but it was not completed. Later, in 2018, she bought CA Technologies for $18.9 billion and in 2019 the purchase of Symantec Corporation for $10.7 billion.

Subsequently, in May 2022, Broadcom announced the VMware acquisition for 61,000 million dollars. Now that a little over a year has passed, we finally see movement and we bring good news, since the EU has given his “okay“to the purchase agreement of Broadcom and VMware.

Missing UK and US approval to finalize purchase

Now that Broadcom has managed to get past the EU antitrust body, it is only a few steps away from finalizing the purchase. The European Union regulator has given a conditional go-ahead, indicating that the purchase will allow Marvell to continue competing in equal footing. In fact, the EU wants to guarantee a similar protection for Marvell, thanks to the commitments that Broadcom has promised.

That the EU has approved the purchase of Broadcom and VMware is a big step, but there is still a lot of work to be done ahead. And it is that, now it is time to face the rest of the remaining regulatory bodies. This implies that they must receive the approval of the United Kingdom and perhaps the most difficult of all, that of the regulator of USA. Luckily, the rest of the countries have already given their approval and these would be: the EU, Brazil, South Africa, Taiwan, Canada and Australia. So we see that since the last week, the shares of broadcom have gone from $846 to $891 at the time of writing. In the case of vmwarewe also observed a peak that occurred on July 11, going from $144 to $154 per share.