Broadcom's VMware Deal Draws More Regulatory Attention

Broadcom's VMware Deal Draws More Regulatory Attention
  • Britain's competition regulator said it examined whether U.S. chipmaker Broadcom Inc's AVGO $61 billion acquisition of cloud computing company VMware Inc VMW could perpetrate anticompetitive repercussions.
  • The Competition and Markets Authority (CMA) invited comments from interested parties by December 6 to help it formally assess whether to launch an investigation into the Broadcom-VMware deal.
  • The Broadcom-VMware deal marks Broadcom's attempt to diversify its business into enterprise software. 
  • Also Read: Microsoft Battled Barrage Of EU Antitrust Complaints; From Unfair Licensing Practices To Activision Blizzard Acquisition
  • The companies also sought European Union antitrust approval.
  • Tech deals drew intense scrutiny from regulators worldwide on concerns of too much market power in the hands of a few and the possibility of more prominent companies acquiring startups only to shut them down.
  • The CMA had ordered Meta Platform Inc META to dump the takeover of Giphy as it could limit other social media platforms' access to GIFs, making those sites less attractive to users and less competitive.
  • Nvidia Corp's NVDA deal to scoop British chip designer Softbank Group Corp SFTBF SFTBY Arm Ltd collapsed after regulatory opposition.
  • Price Action: AVGO shares closed higher by 0.6% at $515.16 on Friday.

Posted In: BriefsEurasiaGovernmentM&ANewsRegulationsTech