Broadcom's Planned $61 Billion Acquisition of VMware to Get Further Probe by UK Regulator -- Update
March 29 2023 - 07:33AM
Dow Jones News
By Ian Walker
The U.K. Competition and Markets Authority said Wednesday that
it will now refer Broadcom Inc.'s planned $61 billion acquisition
of VMware Inc for a further review after being notified that
Broadcom won't be offering any undertakings to satisfy its concerns
over the deal.
The regulator--which started its initial review into the deal in
January--said the deal could lead to a substantial lessening of
competition within the U.K. and invited the companies to offer
undertakings to address its concerns. They were given a deadline of
March 29 to offer undertakings.
It said Wednesday that the acquirer informed the CMA on March 22
that it wouldn't be offering any undertakings.
The deal will now be referred for a further in-depth review.
Broadcom said Wednesday that it didn't have any further
statement on the ruling beyond that issued last week.
On March 22 Broadcom said that it was working constructively
with the CMA as it continues its standard merger review process and
was confident of addressing 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
"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
The U.S. Federal Trade Commission has also been seeking
information about the deal from the companies, citing a previous
Broadcom said in December that it looked forward to continuing
to work with European regulators as part of their review
Write to Ian Walker at email@example.com
(END) Dow Jones Newswires
March 29, 2023 07:18 ET (11:18 GMT)
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