back to article Fears China could trash Broadcom's VMware nuptials as revenge for sanctions

China may yet throw a spanner in the works of Broadcom's imminent takeover of virtualization supremo VMware as payback for the latest in line of export restrictions imposed on it by Washington. Semiconductor giant Broadcom is all set to close its $69 billion buy of VMware on October 30 after passing some regulatory hurdles, …

  1. Martin J Hooper

    Can someone explain to me why a merger between two US companies (I presume) has anything to do with the EU/UK/China??

    Why does the relevant countries authorities have to have a say in things? I could understand if one of the companies were based in those countries but not why they would if the companies aren't in their country...

    1. JohnSheeran

      My best guess is that those markets may make it difficult/impossible to do business in for the combined companies if they don't accept it. Just a guess though.

    2. Hanin Elias

      It appears, that if your company makes a significant profit in a given area/country, you will be forced to abide by the area/country's regulations. I am not sure what the threshold is for accountability, but profits in the billions make politicians take notice. Either way, neither party in this venture want to be excluded from billions, even millions, in profit and will do what it takes to ensure that.

    3. Yet Another Anonymous coward Silver badge

      >Can someone explain to me why a merger between two US companies (I presume) has anything to do with the EU/UK/China??

      How could Apple buying Google and leaving you with a choice of iPhone or "2 tin cans + string" as a choice affect anyone outside Cupertino ?

    4. Jon 37

      If you want to sell your products into the EU/UK/China, then you have to abide by the laws of the EU/UK/China.

      That includes the laws that stop you from buying all your competitors to become a monopoly, and then abusing that monopoly.

      The merged company wants to continue selling its goods into those countries.

      Also, the two companies likely have subsidiaries in the EU/UK/China, so the change of ownership of those subsidiaries is subject to EU/UK/China law.

      So the merger agreement includes a clause that says the two companies will ask all the relevant authorities for permission. If the two companies can't get permission for the merger, then the merger agreement says that the merger will be cancelled.

  2. Michael Hoffmann Silver badge

    I'm so torn!

    On one hand, anything the PRC and its minions do trigger a "go suck eggs, you bastards" response. On the other hand, who actually thinks the Broadcom takeover of VMware is a good thing?!

  3. cookieMonster Silver badge

    Without a doubt the Chinese

    are assholes, but you have to admire the control they have over the big tech companies when you consider the contempt the same companies have for western countries/governments/laws

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