Broadcom set to win EU nod for $61 bln VMware deal, sources say

VMware

12/06/2023 10:35

(Adds European Commission, Broadcom decline to comment in
paragraph 3, details in 4-6)
    By Foo Yun Chee
       BRUSSELS, June 12 (Reuters) - U.S. chipmaker Broadcom
 AVGO.O  is set to gain conditional EU antitrust approval for
its $61 billion proposed acquisition of cloud computing firm
VMware  VMW.N , people familiar with the matter said.
    The European Commission's clearance is tied to Broadcom's
interoperability remedies to rivals to address competition
concerns, the people said.
    The EU antitrust watchdog, which is scheduled to decide on
the deal by July 17, and Broadcom declined to comment.
    One of the remedies focuses on Fibre Channel Host-Bus
Adapters (FC HBAs) and is targeted at rival Marvell Technology,
one of the people said. Marvell Technology did not respond to a
request for comment.
    FC HBAs are storage adapters that connect servers to storage
located outside the server on a storage-area network using the
fiber channel protocol, typically through a switch. Broadcom is
a leading supplier of FC HBAs.
    Broadcom supplies chips used in data centres for networking
and specialised chips that speed up AI work.

 (Reporting by Foo Yun Chee; Editing by Kirsten Donovan)
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