Broadcom and VMware Merger Receives Conditional Approval

Broadcom is set to finalize its merger with VMware on Wednesday following the conditional approval issued by China's State Administration for Market Regulation (SAMR) on Tuesday. This regulatory approval was the final one needed for the deal, which is estimated to be valued at over $80 billion. Once completed, this transaction will be one of the largest technology mergers in history.

In an official press release, both Broadcom and VMware confirmed that they have now received all necessary regulatory approvals and are planning to close the acquisition on November 22, 2023.

Ahead of the merger's completion, both Broadcom and VMware have experienced a decline in their premarket trading. Broadcom's stock has dropped by 3.6% to $959.76, while VMware's stock has seen a 4.6% decrease, trading at $142.95.

The decline in VMware's stock can be attributed to the fact that the merger consideration for current shareholders is set at $142.50 in cash. This information has been obtained from various sources, including risk arbitragers and Broadcom's official news releases and regulatory statements.

Previously, VMware's stock had traded above the merger consideration level, with some investors speculating that the merger election period could be reopened after its original closing date on October 23. This potential reopening could have provided an opportunity for current shareholders to sell their shares at a price higher than $142.50 per share.