VMware (NYSE:VMW) stock is getting a boost on Wednesday after Broadcom’s (NASDAQ:AVGO) plan to acquire the company passed a regulatory milestone.
The big news here is Britain’s Competition and Markets Authority saying the deal wouldn’t harm competition or innovation in the U.K. With that statement, VMware is one step closer to being acquired by Broadcom.
Here’s the Competition and Markets Authority’s statement on the VMW acquisition, as collected from Reuters.
“After examining the evidence gathered from Broadcom, VMware and other interested parties, an independent CMA panel has provisionally found the deal would not substantially reduce competition in the supply of server hardware components in the UK.”
Investors will also remember that the European Commission already gave the deal its approval last week. With these two major regulatory wins, investors are hopeful about the $61 billion acquisition deal for VMW stock.
What This Means For VMW Stock
VMware and Broadcom clearing regulator milestones means the acquisition of VMW is more likely to go through. That has investors excited today, which brings with it some 1.2 million shares changing hands. That’s closing in on the company’s daily average trading volume of about 1.6 million shares.
VMW stock is up 6.4% and AVGO stock is down 1.1% as of Wednesday morning.
There’s even more stock market news that traders are going to want to read about below!
We have breakdowns of all the hottest stock market coverage investors need to know about on Wednesday! A few examples of that include why shares of Constellation Brands (NYSE:STZ), Joby Aviation (NYSE:JOBY), and Ginkgo Bioworks (NYSE:DNA) stock are moving today. All of that news is ready to go at the following links!
More Stock Market News For Wednesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
