In a significant development within the technology industry, chipmaker Broadcom has announced the closure of its $69 billion acquisition of cloud computing firm VMWare. The deal, which has undergone intense scrutiny by regulators worldwide, is one of the largest takeover agreements in the sector.

Broadcom confirmed that it has now received all necessary regulatory approvals for the acquisition, with China's approval being the final one. However, the approval came with additional restrictive conditions imposed by the Chinese regulator. In a statement, the regulator specified that VMWare server software should be compatible with local hardware, and the deal should not limit customers from purchasing and utilizing Broadcom's hardware products, including storage adapters.

Investors, who closely watched the outcome of the deal, had expressed concerns following reports last month that escalating tensions between the United States and China could jeopardize the acquisition. The Biden administration's implementation of stricter controls on high-end chip exports to China in October had exacerbated the bilateral strain between Beijing and Washington.

Shortly after the announcement, Broadcom's shares experienced a decline of over 1%, while VMWare's shares observed a more substantial drop of 4.6%. The closure of the deal was initially expected to take place by November 26, but it is now set for Wednesday, indicating the progress made in meeting regulatory requirements.

The consolidation of Broadcom's technological capabilities with VMWare's cloud computing expertise is expected to drive further innovation and expansion within the industry. The acquisition could potentially enhance VMWare's server software's compatibility with local hardware, providing customers with a seamless user experience. With all regulatory approvals in place, Broadcom and VMWare can now focus on realizing their shared vision and capitalizing on the numerous growth opportunities presented by the ever-evolving technology landscape.