Chinese antitrust regulators approved the purchase of Brocade by Broadcom

27 August 2017, 08:09 | Technologies
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In November last year, it became known that Broadcom bought Brocade Communications Systems for $ 5.9 billion. Such transactions are always subject to the approval of the regulatory authorities of the countries whose interests they affect, which may take quite some time.

European regulators approved the purchase of Brocade by Broadcom in May of this year. More specifically, the European Commission approved the deal on the condition that the buyer will cooperate with competitors and the protection of confidential data to third parties. Previously, permission was obtained in Japan.

To obtain permission from the US antimonopolists, Broadcom had to assume additional obligations. Permission The Federal Trade Commission (FTC) was issued on the condition that the company resulting from the merger of Broadcom and Brocade will not use the information it receives as a Cisco system provider to compete with it in the network switch market.



This week, the Chinese Ministry of Trade gave permission for the deal.

The deal is expected to be completed by the end of October. When the purchase is completed, the new owner plans to split Brocade. The direction of activity related to the release of switches for fiber-optic data storage networks (FC SAN), he intends to retain, and the direction of IP Networking - to sell to another buyer. His search for Broadcom and Brocade are going to do together.




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