The Ministry of Commerce in Beijing issued on Wednesday the terms for Singapore-based Broadcom Ltd.'s $5.9 billion acquisition of Brocade Communications Systems Inc., developer of storage area networking (SAN) and internet protocol (IP) networking solutions.
The target entity is headquartered in San Jose, California. The chipmaker has earlier received approval for the acquisition in the European Union, United States and Japan. Brocade is the only entity in the global market of fibre channel switches aside from Cisco Systems Inc., which is Broadcom's supplier, and the fact has raised eyebrows over potential access to confidential information.
Chinese regulators found correlation between portfolios in the segment. In the statement, dated one day earlier, they told the investor, also traded on the Nasdaq, to maintain interoperability with third-party systems to avoid discrimination, as well as to set up a firewall for sensitive data.
