VMware (NYSE:VMW) shares fell 7.4% in U.S. premarket trading following a report in the Financial Times about China's State Administration of Market Regulation considering a delay in approving Broadcom's (NASDAQ:AVGO) acquisition of the software company.
The report highlights that China's approvals for M&A involving U.S. companies now necessitate additional consultations with the Ministry of Foreign Affairs and the State Council.
Broadcom, in response, stated its expectation that the deal will conclude within its fiscal year, which ends this month.
VMware stock fell on Tuesday on a similar report in the local media.