European Commission still opposes Broadcom/VMware deal

European Commission still opposes Broadcom/VMware deal


The European Commission (EC) has noted its objections to Broadcom’s planned purchase of VMware, citing concerns over competition.

In a statement, the EC said it had informed Broadcom of its concerns that the deal could restrict competition in the global markets for the supply of fibre channel host bus adapters (FC HBAs) and storage adapters.

According to a Reuters report, Broadcom said it remained confident that regulators will eventually conclude the deal this year.

Rangarajan Raghuram, CEO of VMware echoed those thoughts in comments made to the Wall Street Journal last week.

He noted that the timeline was proceeding as anticipated, and he remained confident that a deal could be reached.

The EC isn’t the only regulator looking into the deal. The UK’s Competition and Markets Authority (CMA) has said it is investigating the planned acquisition and the US Federal Trade Commission has also been seeking information on the deal.

After the deal was announced in May 2022, Capacity reported that the proposed acquisition could result in increased pricing for VMware customers.

The US$61 billion takeover was one of the biggest of last year and was seen as a statement of intent from Broadcom as the chipmaker looked to diversify its business into enterprise software.

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