Broadcom-VMware Merger Faces European Regulatory Hurdles

Cloud Security , Endpoint Protection Platforms (EPP) , Endpoint Security

UK’s Competition Authority Announces Probe as Broadcom Awaits EU Clearance for M&A Akshaya Asokan (asokan_akshaya) • November 22, 2022    

Broadcom’s acquisition of VMware faces challenges from European regulatory authorities over potential competitive advantages. The $61 billion deal announced in May still needs clearance from the EU and also faces scrutiny by U.K. authorities before it can be finalized.

See Also: Live Webinar | How To Meet Your Zero Trust Goals Through Advanced Endpoint Strategies

The United Kingdom’s Competition and Markets Authority on Monday announced that it will be probing Broadcom’s proposed deal for potential violations of rules relating to market competition in the U.K.

The agency’s decision comes after San Jose-based semiconductor company Broadcom announced in May plans to purchase cloud and virtualization giant VMware for $61 billion. The deal, which is estimated to be finalized by Oct. 31, 2023, will help Broadcom expand its portfolio with VMware offerings that protect endpoints, workloads and containers (see: Broadcom Beefs Up Security Business With $61B VMware Buy)

The Competition and Markets Authority plans to open the deal up to public comment by relevant industry stakeholders between Nov. 21 and Dec. 6, 2022.

Based on that feedback, the agency will determine if the merger will result in any reduction of market competition. Any potential red flags could result in the agency prohibiting the merger, the regulatory body says in a statement on Monday.


Read more

Explore the site

More from the blog

Latest News