China approves $69bn US technology merger

With the completion of its $69 billion (£55 billion) acquisition of cloud computing company VMware, computer chipmaker Broadcom has closed one of the largest takeovers in the technology industry.

International regulators examined the deal before China gave its final approval.

There were worries that the US-China tensions would have an impact on it.

The approval comes after Presidents Xi Jinping and Joe Biden met last week at the Apec summit in the US.

Based in San Jose, California, Broadcom is an American corporation that creates, develops, and manufactures semiconductor chips in addition to providing infrastructure software solutions.

Another American business, VMware, is based in Palo Alto, California. It creates virtualization software that enables users to operate virtual computers on real computers to boost productivity.

Hock Tan, the president and CEO of Broadcom, expressed excitement about uniting their teams to create "the world's leading infrastructure technology company".

By working together, they intend to develop hybrid and private cloud environments that enable customers to run "apps anywhere".

The firm has applied for and been granted legal merger clearances in Australia, Brazil, Canada, China, the UK, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, and the United States in order to finalize the deal.

According to the firm, shares of VMware will no longer be traded on the New York Stock Exchange (NYSE).

Since 2018, when US President Donald Trump put tariffs and other trade obstacles on China, the US and China have been embroiled in a trade war.

The newest popular commodity is advanced chips, which are utilized in anything from fighter jets to automobiles and cellphones.

China retaliated last month over the Biden administration's move to place additional export restrictions.

However, the two leaders that convened at the Apec summit were able to reach a consensus on other matters, such as cooperating to combat climate change and restarting military contact.

President Xi was described as "a dictator" by President Biden, but China's state-run media celebrated the summit as "historic" and said it would be a "new starting point" for their relationship.

Tensions between the two largest economies in the world have affected Broadcom.

The company revealed plans in 2017 to acquire rival Qualcomm in what would have been the biggest buyout deal ever.

However, after US national security experts warned that a pact could help China overtake America in the race to build 5G technology, Mr. Trump stopped it four months later.

A few weeks later, Broadcom made the decision to relocate from Singapore to the US.