Live Chat

VMWare stock

VMware stock dips close to 10% as China threatens the company’s acquisition by Broadcom

Software maker VMware's stock slipped close to 10% on Thursday, amplifying concerns among investors regarding the future of its acquisition by semiconductor manufacturer Broadcom.

Shares of VMware dipped by 9.5% to close at $150.31 in trading on Thursday, compounding the losses experienced earlier in the week, spurred by mounting anxieties that the ongoing trade tensions between the U.S. and China could impede the completion of the deal.

In May 2022, Broadcom unveiled a purchase agreement to acquire VMware for $61 billion, involving a combination of cash and stock, along with the assumption of $8 billion in net VMware debt. The deal is scheduled to close on October 30.

However, there are indications that the China State Administration of Market Regulation is likely to delay its approval for the Broadcom-VMware deal, according to a recent report by the Financial Times citing people familiar with the matter.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Currency Search
Currency
Index
Shares
ETFs
Bonds
Crypto
Commodity

Instrument

Search
Clear input
Occidental
Siemens
Morgan Stanley
GSX Techedu
Marston's
Alibaba
Skillz Inc
Macy's
Lemonade
Lululemon
Plug Power
Amazon.com
Verizon
Thermo Fisher
Mondelez
General Motors
LVMH
IAG
Cinemark
PETROCHINA
Royal Bank Canada
Anglo American
F5 Networks
Nikola Corporation
Zoom Video Communications
Air France-KLM
Comcast
UniCredit
The Cheesecake Factory
Barrick Gold
Bayer
Toro
Kuaishou
Gen Digital Inc
Tilray
Xiaomi
SMCI
Wish.com Inc
Adobe
DISNEY
Coinbase Inc
UiPath Inc
T-Mobile
Rio Tinto
Schlumberger
Invesco Mortgage
Hammerson
Volkswagen
Sartorius AG
ROBLOX Corp
ChargePoint Holdings Inc
UPS
Pinterest Inc
Continental
Jumia Technologies
Medtronic
PayPal
Twilio
Freeport McMoRan
UnitedHealth
SIG
Tesla
Lyft
Boeing Co
Annaly Capital
Santander
Teladoc
Li Auto
CrowdStrike Holdings
Deere
Fedex
Naspers
ProSiebenSat.1
Bilibili Inc
Costco
New Oriental
NVIDIA
Iberdrola
Gilead
American Express
Apple
Airbus
GoPro
Chevron
HSBC HK
Two Harbors Investment aration
easyJet
Inditex
BlackBerry
Anheuser-Busch Inbev
Deliveroo Holdings
Hubspot
Applied Materials
GameStop
British American Tobacco
Trade Desk
McDonald's
AMC Entertainment Holdings
Adidas
AIA
Bristol Myers
Novavax
TUI
Fresnillo
Shell plc (LSE)
Nasdaq
Ceconomy
Lithium Americas Corp
Rivian Automotive
Qorvo
MercadoLibre.com
Coca-Cola Co (NYSE)
HDFC Bank
Roku Inc
Infinera
Arista
Total
JnJ
Dave & Buster's
PG&E
ON Semiconductor
Diageo
XPeng Inc
ASML
Vodafone
Airbus Group SE
Campari
Telecom Italia
Glencore plc
HSBC
ZIM Integrated Shipping Services Ltd
Kraft Heinz
Spotify
Aurora Cannabis Inc
Etsy
Goldman Sachs
Norwegian Air Shuttle
Abbott
Snap
Linde PLC
Blackstone
Cellnex
Tencent
Barclays
Virgin Galactic
JP Morgan
Allianz
RTX Corp
Taiwan Semi
Wal-Mart Stores
Intel
DoorDash
Wayfair
SONY
II-VI
Norwegian Cruise Line
BioNTech
Palantir Technologies Inc
CNOOC
Cisco Systems
Electrolux
ALIBABA HK
Robinhood
Vonovia
British American Tobacco
SAP
Ford
Cameco
Peloton Interactive Inc.
Toyota
Amgen
AT&T
Infosys
Starbucks
Lloyds
Qualcomm
Canopy Growth
3D Systems
CarMax
LUCID
Eni
AMD
Target
IBM
FirstRand
Lumentum Holdings
Alphabet (Google)
Workday Inc
ASOS
Conoco Phillips
Moderna Inc
Trump Media & Technology Group
Fuelcell
MerckCo USA
Salesforce.com
Hermes
BASF
AstraZeneca
Christian Dior
Broadcom
Oracle
Vipshop
CCB (Asia)
Nio
Block
Uber
Accenture
Meta (Formerly Facebook)
Berkshire Hathaway
Wells Fargo
Blackrock
Rolls-Royce
Pfizer
Microsoft
Home Depot
Mastercard
Lufthansa
Marriott
AbbVie
China Life
Baidu
Eli Lilly
DeltaAir
Chipotle
BP
General Electric
eBay
Quanta Services
Netflix
Micron
Visa
Golar LNG
ADT
JD.com
American Airlines
Porsche AG
Palo Alto Networks
Teleperformance
Lockheed Martin
Upstart Holdings Inc
Delivery Hero SE
Airbnb Inc
Nel ASA
GoHealth
Shopify
Aptiv PLC
Bank of America
PepsiCo
Philip Morris
Exxon Mobil
Procter & Gamble
Beyond Meat
Snowflake
L'Oreal
Sea
Porsche
Deutsche Bank
Nike
Unilever
CAT
Prosus N.V.
Unity Software
Citigroup
Upwork Inc.
Vir Biotechnology

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

VMware acquisition: Companies expect to close deal on schedule, despite delay

The prospect of a delay stems from the United States' recent tightening of restrictions on the export of advanced semiconductor technology to China, originally unveiled by U.S. President Joe Biden a year ago. The move, announced on October 18, sent jitters through the market, causing multiple tech firms’ stock to fall — market leader Nvidia’s stock has lost close to 7% over the past 5 days.

As per a Barron’s report, the new rules impose controls on an expanded range of semiconductor equipment types, fortifying the measures to prevent U.S. companies from supporting advanced Chinese semiconductor manufacturing. Licensing requirements regarding chip manufacturing equipment have been broadened to encompass 21 more countries, extending beyond China and Macau, for which the United States maintains an arms embargo.

According to the Financial Times, both VMware and Broadcom said they are still expected to stick to the original schedule to finalise the deal.

In documents filed this week related to the acquisition, Broadcom and VMware acknowledged that the deal's progress could be affected by the ability to secure regulatory approvals on time and on the expected terms.

Regulatory hurdles: Delays in China approval lead Intel dropping $5.4 billion deal

Earlier this year, California-based tech giant Intel abandoned its intended $5.4 billion purchase of Israel's Tower Semiconductor due to delays in obtaining Chinese authorization. A merger triggers an antitrust examination in China in cases where a merger involves two companies that collectively generate more than $117 million in annual revenue from the country.

At the time of writing on Friday, VMware shares were trading at $152.00, up close to $2 and 1.12% in pre-market trading, as per MarketWatch data. The company’s stock has surged 22.5% year-to-date.

Broadcom shares were mostly flat in pre-market trading on Friday, up 0.23% at a price of $869.66. The company’s stock has lost close to 2% over the past five days but gained 55% year-to-date.

When considering shares for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Wednesday, 20 November 2024

Indices

MicroStrategy Stock Surges as Bitcoin price rises to fresh record above $94K

Wednesday, 20 November 2024

Indices

Nasdaq futures decline, Nvidia shares dip following the earnings report

Mixed market performance

Wednesday, 20 November 2024

Indices

Markets Mixed Amid Inflation, Tech Rally, and UK Economic Woes

Tuesday, 19 November 2024

Indices

Nvidia shares rallied on AI spending ahead of Nvidia Q3 earnings 2024

Live Chat