UK to examine Broadcom's $61 bln VMware deal in depth (updated)

VMware

29/03/2023 11:32

(Adds details)
       March 29 (Reuters) - Britain said it would investigate
Broadcom's  AVGO.O  acquisition of VMware  VMW.N  in depth after
the U.S. chipmaker offered no immediate undertakings in response
to its concerns about the impact of the $61 billion deal on the
server market.
    Britain's Competition and Markets Authority said earlier
this month that Broadcom's acquisition of the cloud computing
and virtualisation company could drive up the cost of computer
parts and software for servers.
        It said on Wednesday that Broadcom had declined to offer
any undertakings in the five-day period after it published its
concerns, and it would therefore proceed to an in-depth inquiry,
which can take up to six months.
  
        Broadcom said earlier this month that it was working
constructively with the regulator and it would demonstrate that
the deal would enhance competition and would benefit businesses
and consumers.
  

 (Reporting by Sinchita Mitra in Bengaluru and Paul Sandle in
London; Editing by Anil D'Silva and William James)
 ((Sinchita.Mitra@thomsonreuters.com;))