Broadcom Corporation (NASDAQ:AVGO) on Monday announced that it expects to close its acquisition of VMware Inc. “soon" and before the expiration of the merger agreement on November 26, 2023.
Broadcom had previously stated that the deal would close on October 30.
Under the terms of the agreement, VMware shareholders had the option to receive either $142.50 in cash or 0.2520 of a Broadcom share for each VMware share held.
Broadcom noted about 96% of VMware shareholders have elected to receive stock consideration over cash.
The deal faces a potential delay in getting approval from China's regulatory authorities but has not encountered any legal obstacles in the US.
Approval from Chinese regulators is the last major hurdle to completing the transaction, and the delay could be in response to Washington’s recent strengthening of rules to block Chinese access to high-performance semiconductors.
The merger deal has already received legal clearance in other major markets, including the EU, UK, South Korea, and Japan.
About a third of Broadcom’s $33 billion in annual revenue came from shipments to China, the Financial Times reported.
Shares of Broadcom edged 0.1% lower to $837.28 in early Monday trading.
Contact Sean at sean@proactiveinvestors.com