EU says Broadcom's proposed VMware deal could restrict competition (updated)

VMware

12/04/2023 16:40

(Adds Broadcom's response, background)
       BRUSSELS, April 12 (Reuters) - The European Commission
on Wednesday said U.S. chipmaker Broadcom's  AVGO.O  proposed
$61 billion takeover of cloud computing company VMware  VMW.N 
could restrict competition in the market for certain hardware
components.
    The Commission said it had informed Broadcom of its
objection that the deal could restrict competition in the global
markets for the supply of so-called fibre channel host bus
adapters (FC HBAs) and storage adapters, by limiting access for
competitors' hardware to VMware's software.
    Broadcom said it remained confident that regulators will
eventually conclude that the takeover does not present any
competition issues, and said it expected to close the deal "in
fiscal year 2023".
    The EU's objections follow an investigation into the deal
opened in December last year, over concerns it would give
Broadcom the opportunity to restrict competition in the market
for certain hardware components which interoperate with VMware's
software.
    Sources told Reuters in February Broadcom was set to receive
an EU antitrust warning about the possible anti-competitive
effects of its billion bid.
    Broadcom has the opportunity to reply to the Commission's
objections and to request an oral hearing.

 (Reporting by Bart Meijer. Editing by GV De Clercq and Jane
Merriman)
 ((Bart.Meijer@thomsonreuters.com;))