Ed. Note: Read the latest on the merger: Down to the wire: Broadcom, VMware megadeal doesn't get chopped by China
The deal has to close by November 26
Chinese regulators are still holding the process up
Broadcom could end up owing VMware a $1.5B termination fee
The suspense is killing us. Chipmaker Broadcom’s $61 billion acquisition of cloud software company VMware still hangs in the balance — even after the meeting of president Biden and president Xi Jinping in San Francisco last week.
The merger deal has to close by November 26. If regulatory clearances aren’t granted and it doesn’t close by then, Broadcom will owe VMware a termination fee of $1.5 billion under the terms of the deal.
Some analysts had been expecting the meeting between the U.S. and Chinese presidents last week to speed the Chinese regulatory approval process up. This hasn’t happened yet.
The Chinese authorities have apparently slowed approval for the deal because of tighter U.S. restrictions on China purchasing advanced chips from U.S. companies.
Clearly, there is little time between now and November 26 to get the deal closed. It will be down to the wire.
Catch up on our extensive coverage of this deal:
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