Nov 21 Reuters Broadcom said it planned to close its 69 billion acquisition of cloud computing firm VMWare on Wednesday, wrapping up one of the biggest takeover deals in the technology industry that was closely scrutinized by regulators globally.

The chipmaker has now received all regulatory approvals for the purchase after China approved the acquisition with additional restrictive conditions earlier on Tuesday, it said.

VMWare server software should work with local hardware and the deal should not restrict customers from purchasing and using Broadcom39;s hardware products such as storage adapters, the Chinese regulator said in a statement.

Some investors in the companies had feared about the outcome of the deal after reports said last month that rising SinoU.S. tensions could lead China39;s regulator to scuttle the deal.

Tensions between Beijing and Washington had mounted after the Biden administration introduced tougher controls on exports of highend chips to China in October.

Broadcom shares were down more than 1, while VMware was down 4.6. The deal was previously expected to close by Nov. 26.

Brokerage Bernstein attributed the share moves to some technical impacts from arbitrage trades around the deal.

Reporting by Zaheer Kachwala and Harshita Mary Varghese in Bengaluru and Twinnie Siu in Hong Kong; Editing by Anil D39;Silva and Shounak Dasgupta

Source Reuters