The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →China’s market regulator conditionally approved Broadcom’s acquisition of VMware on November 21, 2023. The companies said that day they had received all required regulatory approvals and intended to close the next day; Broadcom confirmed completion on November 22. China’s clearance was not unconditional: it imposed ten-year commitments covering specified Broadcom hardware and VMware virtualization software sold in China.
What China required for approval
China’s State Administration for Market Regulation (SAMR) identified potential competition concerns in non-public-cloud virtualization software and selected server hardware markets. It considered risks that the combined company could tie VMware software to Broadcom hardware, impair compatibility with competing hardware, or misuse sensitive information that hardware makers provided through VMware’s certification process. These were the regulator’s theories of potential harm, not findings that the companies had carried out those practices.
SAMR’s decision applied to Broadcom Fibre Channel adapters, storage adapters and Ethernet network cards, and VMware server virtualization software sold in China. Its conditions required the parties and combined company to:
- Avoid unjustified bundling and discriminatory terms for the covered products.
- Maintain VMware software interoperability with third-party hardware sold in China.
- Continue developing and certifying Broadcom Fibre Channel adapter drivers so they support third-party virtualization software.
- Protect third-party hardware manufacturers’ confidential information through measures including confidentiality agreements, limits on use, separate storage and separation of personnel.
The commitments were binding for ten years from their effective date. SAMR’s official decision is in Chinese; the list above summarizes its conditions. For the legal text, see SAMR’s November 21, 2023 decision.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Why the deal was described as worth $69 billion
The $69 billion figure combines equity value and assumed debt; it does not mean Broadcom paid $69 billion in cash and stock for VMware shares. In its May 26, 2022 announcement, Broadcom described the transaction as approximately $61 billion in cash and stock and said it would assume $8 billion of VMware net debt. The UK Competition and Markets Authority later described the total as $69 billion—$61 billion of equity plus $8 billion of debt, based on Broadcom’s closing share price on May 25, 2022.
Sources: Broadcom’s transaction announcement and the CMA’s account of its review.
Rank #2
How the China decision fits the closing timeline
- May 26, 2022: Broadcom announced its agreement to acquire VMware.
- August 21, 2023: The UK CMA cleared the transaction after a Phase 2 review.
- November 21, 2023: SAMR issued its conditional approval. Broadcom and VMware announced that all required regulatory approvals had been received and said they intended to close on November 22.
- November 22, 2023: Broadcom announced that the acquisition was complete and that VMware common stock would cease trading on the New York Stock Exchange.
The companies’ November 21 notice is available at Broadcom and VMware’s closing announcement; Broadcom’s completion notice is here.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.China’s review and the UK review reached different outcomes
The two authorities assessed different jurisdictions and legal questions. China imposed behavioral commitments tied to specified products sold in China. The UK CMA concluded that the deal would not substantially lessen competition in the supply of server hardware components in the UK and cleared it without the Chinese conditions described above. The CMA discussed interoperability and innovation concerns during its investigation before reaching that conclusion; its finding did not remove or override SAMR’s China-specific commitments.
Rank #3
For its review, SAMR cited 2021 estimates that VMware held 92–97% of the global market and 22–27% of the Chinese market for non-public-cloud virtualization software. Those figures refer to the regulator-defined market, not all virtualization or cloud software. SAMR also estimated Broadcom’s 2021 shares in narrowly defined adapter and network-card markets:
| Product market | Broadcom share, global | Broadcom share, China |
|---|---|---|
| Fibre Channel adapters | 60–65% | 70–75% |
| Storage adapters | 30–35% | 15–20% |
| Ethernet network cards | 10–15% | 5–10% |
These are SAMR’s 2021 estimates in the product markets it defined, not shares of all server hardware. The figures and market definitions appear in the regulator’s decision. The CMA’s August 2023 conclusion is summarized in its clearance announcement.
Quick Recap
Best Value
Rank #4
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
