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VMware Extends Deadline For Broadcom’s $61B Takeover

 |  May 21, 2023

VMware has agreed to a deadline extension for its acquisition by Broadcom Inc. due to regulatory review, given the $61 billion agreement.

According to a filing by VMware on Friday, the companies are working towards completing their purchase by Aug. 26, after a three-month delay from the original date. The only obstacle remaining is regulatory approvals, and if the transaction is not completed by Aug. 26, either company can extend the deadline to Nov. 26.

The proposed merger between VMware and Broadcom is currently undergoing a thorough review by the European Union. Regulators have expressed concerns that the merger may result in negative impacts for business customers, such as increased prices, decreased quality, and reduced innovation.

Read more: Broadcom Offers Antitrust Remedies To EU In VMware Merger Probe

Broadcom has offered antitrust commitments to the European Commission to address concerns, with regulators extending their deadline for ruling on the deal to July 17. The UK’s Competition and Markets Authority is also reviewing the transaction and is expected to make a decision on approval by Sept. 12.

On May 26, 2022, Broadcom revealed its intention to acquire VMware, which was part of CEO Hock Tan’s strategy to expand into software.