Why Broadcom-Merger Bound Cloud Computing Company VMWare's Shares Are Gaining Today

VMware Inc VMW shares are gaining Monday morning after an update that the semiconductor and software products maker Broadcom Inc's AVGO acquisition of VMware will close soon, but in any event before the expiration of their merger agreement.

The parties have received legal merger clearance in Australia, Brazil, Canada, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, the United Kingdom, and foreign investment control clearance in all necessary jurisdictions.

There is no legal impediment to completing under U.S. merger regulations.

Each VMware stockholder will be entitled to receive, for each share of VMware, $142.50 in cash, without interest or 0.2520 of a share of Broadcom common stock.

The companies didn't give an update on their attempt to get approval in China, the last major hurdle for the deal to clear, according to a report from Bloomberg.

Previous reports suggested that antitrust regulators may take longer to approve the deal given a tightening of U.S. chip sanctions.

Price Action: VMW shares are trading higher by 1.27% at $144.00 in premarket on the last check Monday.