Broadcom, VMware says deal closing 'soon,' awaits China's OK

Broadcom (AVGO) plans to acquire VMware (VMW) in a $61 billion agreement that the companies hope to finalize soon. However, the deal faces potential delays in getting approval from Chinese regulators. The deal currently has an expiration date of November 26.

Yahoo Finance's Seana Smith and Brad Smith break down the details of this morning mover.

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SEANA SMITH: Let's get to our next mover and that's Broadcom's $61 billion deal to buy VMware, looking set to close quote soon. That's according to the companies. Now it comes amid concerns that Chinese regulators could delay the transaction. In a statement today, the company is saying that there's, quote, "no legal impediment here to closing under US merger regulations."

They did not, though, give an update on-- they did not give an update on their attempt to get approval in China. However, we know China is the big question here going forward exactly what that looks like here. They didn't say how close they might be to getting any sort of approval there from Chinese regulators. That's the last major hurdle here to closing the deal.

They did though, reiterate maybe some optimistic toning here in this release. We know that the deadline here it expires on November 26. So we're certainly coming down to the wire and waiting for some time for this deal to close. So I guess maybe a bit of an optimistic tone that we're hearing from both of those companies.

BRAD SMITH: Yeah, it looks like about 10 different jurisdictions that they have approval from as of right now and no legal impediments to closing under US merger regulations here. But, of course, notably this is going to bring together two large companies, especially considering how they would be able to move forward in both of the ambitions.

Whether that'd be making sure that kind of within the consolidation efforts that they're moving forward, with being able to make sure that the semiconductor and infrastructure software solutions that Broadcom has, plus the-- and you love to hear me say this-- the multi-cloud from VMware, those approaches and services that they have, how that all intertwines kind of bringing together two different portfolio client bases and perhaps being able to cross-sell here. That's going to be significant.