Broadcom's Planned VMware Acquisition Will Lessen Competition, UK Regulator Says

By Ian Walker

The U.K. Competition and Markets Authority said on Wednesday that Broadcom Inc.'s planned $61 billion acquisition of VMware Inc. will lead to a substantial lessening of competition within the U.K. and has invited the companies to offer undertakings to address its concerns.

The regulator--which started its initial review into the deal in January--has set a deadline of March 29 for the companies to offer undertakings. If none are provided then it will refer the deal for further review.

On Dec. 20 the European Union's antitrust watchdog said it would open an investigation into the deal as it believed it would allow Broadcom to restrict competition in the market for certain hardware components.

The commission will have until May to make a decision on the merger.

The U.S. Federal Trade Commission has also been seeking information about the deal from the companies, citing a previous regulatory filing.

Broadcom said in December that it looked forward to continuing to work with European regulators as part of their review process.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

March 22, 2023 07:28 ET (11:28 GMT)

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