VMW

By Ian Walker

The U.K. Competition and Markets Authority said on Wednesday that Broadcom Inc.'s planned $61 billion acquisition of VMware Inc. will lead to a substantial lessening of competition within the U.K. and has invited the companies to offer undertakings to address its concerns.

The regulator--which started its initial review into the deal in January--has set a deadline of March 29 for the companies to offer undertakings. If none are provided then it will refer the deal for further review.

"We are working constructively with the CMA as it continues its standard merger review process and are confident we will address any concerns. We will demonstrate that the transaction enhances competition and benefits businesses and consumers through increased quality, innovation and choice," Broadcom said in an emailed statement to Dow Jones.

"The combination of Broadcom and VMware is about enabling enterprises to accelerate innovation and expand choice by addressing their most complex technology challenges in this multi-cloud era, and we are confident that regulators will see this when they conclude their inquiry," it said.

On Dec. 20 the European Union's antitrust watchdog said it would open an investigation into the deal as it believed it would allow Broadcom to restrict competition in the market for certain hardware components.

The commission will have until May to make a decision on the merger.

The U.S. Federal Trade Commission has also been seeking information about the deal from the companies, citing a previous regulatory filing.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

March 22, 2023 08:45 ET (12:45 GMT)

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