Broadcom’s Deal for VMWare Gets Conditions For Chinese Approval

(Bloomberg) — Broadcom Inc.’s deal with software maker VMware Inc. has received a list of conditions it must meet to get approval from Chinese regulators, the final hurdle for the companies’ $61 billion merger.

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The conditions are tied to how the companies sell their products in the Chinese market, including making sure VMWare’s server software is inter-operable with local hardware, the regulator said in a statement on Tuesday. The Chinese state market regulator said it will approve the deal if they’re met and that it has the right to supervise and inspect the companies’ adherence to the restrictions.

The combination of the US chipmaker and cloud software company is one of the biggest technology mergers ever and had already received clearance from the EU, UK, South Korea and Japan. The companies still needed approval from China, whose regulators have tanked other large mergers in recent years, and had delayed closing the deal. The agreement was set to expire on Nov. 26 and the companies had previously said they planned to close the combination at the end of last month.

Read More: Broadcom Confident VMware Deal to Close Despite China Review

VMWare shares rose as much as 27% in premarket trading before declining 3.4% before New York exchanges opened. The stock had closed at $149.91 on Monday. Broadcom slipped 2.9% in premarket after closing at $995.71.

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