UK to examine Broadcom’s $61 billion VMware deal in depth

The UK government has announced plans to conduct a detailed investigation of Broadcom’s proposed $61 billion acquisition of VMware. The Competition and Markets Authority (CMA) expressed concern that the deal could have a detrimental impact on the server market, leading to increased costs for computer parts and software for servers. However, Broadcom failed to offer any immediate solutions to these issues during the initial five-day period following the announcement of the CMA’s concerns. As a result, the CMA will now embark on an in-depth investigation which could delay the acquisition by as long as six months.

Broadcom has insisted that it will work collaboratively with regulators and that the deal will help to stimulate competition and benefit both businesses and consumers.

Reporting by Sinchita Mitra in Bengaluru and Paul Sandle in London; Editing by Anil D’Silva and William James