China pauses review of Broadcom's VMware deal as advanced talks occur - report (update)
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Update 9:40am: Adds deal spread, further comment from Broadcom. 
China's antitrust authority has paused its review of Broadcom's (NASDAQ:AVGO) planned $61 billion purchase of VMware (NYSE:VMW) as the regulator has advanced remedy talks with the parties on the transaction. The deal spread narrowed to $10.48 from $11.88 on Tuesday.
China's State Administration for Market Regulation is likely to impose behavioral remedies on the deal, according to a Dealreporter item on Wednesday. It's not unusual for the SAMR to pause the review when a transaction enters the advanced remedy talks stage.
"We are making progress with our various regulatory filings around the world, having received legal merger clearance in Australia, Brazil, Canada, the European Union, Israel, Japan, South Africa, Taiwan, the United Kingdom, and foreign investment control clearance in all necessary jurisdictions," Broadcom said in a statement to Dealreporter.
Broadcom also confirmed to Dealreporter that in the U.S. the Hart-Scott-Rodino pre-merger waiting periods have expired, and there is no legal impediment to closing under U.S. merger regulations. Broadcom (AVO) reiterated to the publication that the deal will close in its fiscal year 2023.
The latest news comes after reports earlier this month that the parties are expected to start remedy discussions with SAMR. The proposed remedy is said to have received positive feedback from industry and government officials.
Traders are focused on China as it is the last major approval needed for the transaction to close after it received clearance in the UK last month and the Hart-Scott-Rodino waiting period in the U.S. expired. Broadcom (AVGO) has said it plans to close the deal on Oct. 30.

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