UK considering in-depth probe into Broadcom-VMware merger (updated)

VMware

22/03/2023 11:22

(Adds details)
       LONDON, March 22 (Reuters) - Britain's competition
regulator said on Wednesday it was considering whether to refer
U.S. chipmaker Broadcom's  AVGO.O  $61 billion acquisition of
VMware  VMW.N  for an in-depth probe after finding the deal
could harm competition.
    The Competition and Markets Authority (CMA) said the deal
could make computer servers more expensive for British
businesses.
        "Servers are a vital building block, functioning largely
thanks to hardware products made by firms like Broadcom, working
in unison with virtualisation software from firms like VMware,"
said CMA Executive Director David Stewart.
  
        "We are concerned this deal could allow Broadcom to cut
out competitors from the supply of hardware components to the
server market and lead to less innovation at a time when most
firms want fast, responsive, and affordable IT systems."
  
        The regulator said Broadcom now had five days to offer
legally binding proposals to address its concerns, after which
it would decide within a further five days whether to refer the
deal to a in-depth investigation.     
  
       
  

 (Reporting by Muvija M and Paul Sandle; editing by William
James)
 ((Muvija.M@thomsonreuters.com; within the UK: +44 7776813338,
outside the UK: +91 80 61822698; Twitter: https://twitter.com/muvija_m;))