UK regulator begins review of Broadcom’s VMware acquisition

Broadcom announced in May this year that it will acquire VMware in a cash-plus-stock manner. Based on the closing price of Broadcom common stock on May 25, 2022, the total transaction value is approximately $61 billion and is expected to be completed in 2023. In addition, Broadcom will assume $8 billion of VMware’s net debt. After the transaction is completed, Broadcom’s software division will be renamed VMware, and its existing infrastructure and security software solutions will continue to operate as part of the expansion.

According to DigiTimes, the British Competition and Markets Authority (CMA) is investigating Broadcom’s acquisition of VMware and will solicit opinions before December 6 to determine whether the deal will hinder market competition. The European Union has also launched an antitrust investigation into the deal before, because regulators worry that the acquisition may harm competition in the global technology industry, and may make a decision on whether to approve the deal before December 20. In addition, the US Federal Trade Commission (FTC) investigation into this transaction has advanced to the second phase, and the evidence collected is being analyzed for a broader investigation.

Broadcom said that the new VMware will be part of it, which will provide enterprise customers with greater choice and flexibility, and provide better infrastructure, distributed computing, and other solutions to meet the most complex IT infrastructure challenges and accelerate Broadcom’s business scale and growth in software.