Broadcom (NASDAQ:AVGO) received conditional approval for its VMware (NYSE:VMW) merger from China on Tuesday.
Broadcom (AVGO) shares were down 2.5% in premarket trading on Tuesday, while VMware (VMW) shares fell nearly 4%, erasing earlier gains of as much as 14%.
The conditional approval came from China’s State Administration of Market Regulation, or SAMR.
The approval from China comes just days after President Biden met with his Chinese counterpart, Premier Xi Jinping. At last week’s APEC summit, Biden hailed progress between the two nations, while Xi told U.S. CEOs that China is ready to be a partner to the U.S.
It was recently reported that China’s holdup of the $69B merger was “clearly political” in nature.
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