In a regulatory tussle that started last year, Broadcom (NASDAQ:AVGO) now expects its planned acquisition of VMware (NYSE:VMW) to receive conditional approval from Chinese regulators. Both Broadcom and VMware are trading higher in Thursday’s session.
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Talks about the acquisition deal, valued at $60 billion, started in May of last year. Since then, Broadcom has sought regulatory green lights in several countries. According to Dealreporter, citing sources close to the development, the company is closing in on the approval with China’s State Administration for Market Regulation. However, the sources did not give any specific timelines for that to happen.
The company has already secured regulatory approval from the UK’s Competition and Markets Authority (CMA) on the planned acquisition. Meanwhile, in the U.S., Broadcom said the expiration of the HSR waiting periods means it has no worries about closing the deal under U.S. merger regulations.
With no disclosed timeline, the deal may be approved in October or November. Nonetheless, the company already assured that the deal will close in its Fiscal Year 2023.
What is the Target Price for AVGO?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AVGO stock based on 16 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average AVGO price target of $984.94 per share implies 8.05% upside potential.
