'Beijing Weighs Delaying Approval Of $69B Broadcom-VMware Deal' - Financial Times
Portfolio Pulse from Benzinga Newsdesk
Beijing is considering delaying the approval of Broadcom's $69bn acquisition of VMware. This comes after Washington implemented stricter rules to prevent Chinese access to high-performance semiconductors. China's State Administration of Market Regulation has not yet approved the deal announced in May 2022 and is likely to delay it further.
October 19, 2023 | 2:20 pm
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Broadcom's acquisition of VMware may be delayed by Beijing, potentially affecting the company's expansion plans.
Broadcom's acquisition of VMware is a significant move for the company. If Beijing delays approval, it could disrupt Broadcom's plans and potentially affect its stock price negatively in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The delay in Broadcom's acquisition of VMware by Beijing could signal increased regulatory scrutiny from China, potentially affecting Chinese market ETFs like FXI.
Increased regulatory scrutiny from Beijing could create uncertainty in the Chinese market, potentially affecting ETFs like FXI that track Chinese stocks. This could lead to a negative impact on FXI's price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
The delay in Broadcom's acquisition of VMware by Beijing could impact VMware's future plans and stock price.
As the target of Broadcom's acquisition, VMware's future plans and stock price could be affected by any delay in approval from Beijing. This uncertainty could lead to a negative impact on VMware's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100