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CMA ponders probe into Broadcom, VMware deal

Competition and Markets Authority  UK.jpg

The Competition and Markets Authority (CMA) is looking into whether Broadcom’s US$61 billion acquisition of cloud computing firm VMware will lessen competition.

The deal, which was announced in May, is one of the biggest acquisitions of the year and could lead to price hikes for customers.

The CMA is inviting comments from those interested in the deal by December 6 to help it with an assessment on whether to launch an investigation into the acquisition.

A statement on the GOV.uk website says: “The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

The company are also seeking early European Union antitrust approval by pointing to competition from Amazon, Microsoft and Google.

Just a few years ago Broadcom attempted to purchase Qualcomm but withdrew its US$117 billion offer after it was blocked by then President Donald Trump, citing national security concerns.

However, that did not deter Broadcom from pursuing further M&A deals. It took over business software company CA Technologies for $18.9 billion and Symantec Corp’s security division for $10.7 billion.