China Stalls Broadcom's VMware Deal

China Puts Brakes on VMware Deal as Tensions Flare

China's State Administration for Market Regulation (SAMR) has yet to approve Broadcom's $69 billion acquisition of VMware, raising concerns of a potential delay as a result of increased tensions between China and the U.S.
Approval delays are speculated to be Beijing's retaliation for the ongoing U.S. export restrictions and sanctions against China, as Broadcom generates significant revenue from the Chinese market.
Despite regulatory approvals from other jurisdictions including the EU, UK, Australia, Brazil, Canada, South Africa, and Taiwan, China and South Korea's Fair Trade Commission are yet to give their approval for the merger.
Approvers for mergers involving U.S. companies now require additional consultations with China's Ministry of Foreign Affairs and the State Council, adding political nuance to the process.
There are concerns about potential layoffs and a price hike on VMware licenses post-merger, raising questions on the impact of the acquisition on VMware and its clients.