- US chip manufacturer Broadcom Inc AVGO $61 billion VMware, Inc VMW The deal could hit a roadblock as EU antitrust authorities stand ready to launch a full investigation into the deal.
- The proposed transaction reflected Broadcom’s attempt to diversify its business into enterprise software, but coincided with regulators’ scrutiny of Big Tech’s and Reuters’ deals reports.
- Broadcom has been pushing for early EU approval of the deal, highlighting the competition Amazon.com Inc AMZN, microsoft corp MSFTand alphabet inc WELL Google Google in the cloud computing market.
- Broadcom had a state-of-play meeting with European Commission officials earlier this week.
- The EU competition authority is expected to complete its first deal review on December 20.
- Broadcom anticipated that the transaction size would expand the review process timeline to other key geographies.
- Beltug, a Belgian association of CIOs & Digital Technology Leaders, and its counterparts Cigref from France, CIO platform Nederland and VOICE Germany had expressed their fears about the deal, which would result in drastic price hikes and more brutal business practices towards customers.
- In November, the Competition and Markets Authority (CMA) asked for comments to help it formally assess whether to introduce one Investigating the Broadcom-VMware deal.
- Price promotion: AVGO shares closed up 2.57% on Friday at $544.72.
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