China Tuesday (November 21) approved the acquisition of American chip manufacturer Broadcom's acquisition of software manufacturers VMWARE, ending the unknown situation of the transaction for several months.
The Wall Street Journal reported that since the acquisition transaction of US $ 61 billion (below, about S $ 81.627 billion) in May 2022, China has remained silent.The deadline for the transaction is Sunday (November 26), and China is the last country to approve the transaction.
Under normal circumstances, if the sales of the two parties in China exceeded $ 117 million each year, the merger transactions of the two parties need to be approved by the Chinese government.
According to Bloomberg, although Broadcom's acquisition of Weiring's transaction was approved by China, a series of conditions must be met.
China approves the additional conditions of the exchange is related to how the two companies sell products in the local market.According to a statement issued by the Chinese Market Supervision Administration, the conditions include to ensure that Weiru's server virtualization software and the interoperability of third -party related hardware products sold in the market in China.China claims that if the conditions are met, the transaction will be approved. At the same time, the General Administration of Market Supervision has the right to supervise whether the company has observed restrictions.
