According to reports, EU antitrust regulators intend to launch a full-scale investigation into Broadcom Inc.’s $61 billion acquisition of VMware Inc.
The proposed acquisition, the second largest globally so far this year, highlights Broadcom’s attempt to diversify its business into enterprise software, but it comes as regulators around the world tighten their scrutiny of Big Tech deals.
Broadcom will now be subjected to an in-depth European antitrust review, and a full investigation will be announced on December 20, with a completion deadline of mid-May.
Due to the size of the transaction, Broadcom anticipates that the review process will be extended in other key regions. “Having said that,” the company said, “we remain confident that this transaction will close and be completed in our fiscal 2023.”
Broadcom also cited Amazon, Microsoft, and Google as advantages, and claims that the transaction does not require phase two regulatory approval. If the takeover proceeds to phase two, the European Commission will investigate the acquisition for at least four months.
The sources for this piece include an article in Reuters.