In Broadcom-VMware Deal, All Eyes On APEC 2023 And Chinese President’s San Francisco Stop
Summary
Multiple analysts have told CRN that the Chinese president’s stop will be closely watched amid US chip trade barriers. The future of Broadcom and VMware’s $61 billion deal has become entangled with realpolitik of international trade relations as Beijing stands as the lone, regulatory holdout, meaning the acquisition’s chances of closing by the outside date are growing smaller, analysts told CRN. “And unless concessions are made on this restriction, the chances of a successful close appear to be very slim.” As the pendulum swings closer to the deal’s Nov. 26 outside date when either Broadcom or VMware could walk away, all eyes with a stake in the acquisition are watching San Francisco as Chinese president Xi Jinping meets Wednesday with business leaders and politicians, including U.S. President Joseph Biden at APEC 2023. A financial analyst who asked not to be named said money managers with stakes in VMware and Broadcom will be paying attention to Xi’s meetings with business leaders, and listening for signs that China is inclined to greenlight the merger. China’s competition authority is the final regulatory hurdle that Broadcom must clear before it can complete the acquisition of the virtualization all-star.
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