According to foreign media reports, there have been new developments since the acquisition of VMware by Broadcom. On Wednesday local time, the UK competition regulator temporarily approved the $69 billion acquisition of VMware by US technology company Bo, believing that the deal will not weaken competition in the supply of critical computer server products.
The UK Competition and Market Authority (CMA) approved the US technology company Broadcom's acquisition of VMware for $69 billion on the 19th local time.
Extended reading: 410.658 billion yuan! Broadcom announces acquisition of cloud computing company VMware
According to reports, the CMA has temporarily approved the largest acquisition in the history of Broadcom. Previously, Broadcom provided interoperability remedies to some competitors to solve the problem, and EU regulatory authorities gave the green light to the acquisition last week. However, the completion of the acquisition case will depend on whether other necessary national regulatory authorities have "released" it.
CMA stated, "After reviewing evidence collected from Broadcom, VMware, and other stakeholders, the independent CMA team has temporarily found that the transaction will not significantly reduce competition in the supply of server hardware components in the UK."
In recent years, in order to strengthen the company's software business and establish the largest and most diversified company in the chip industry, Broadcom has acquired several large software companies. For example, in 2018, it acquired CA Technologies for $18.9 billion, and in 2019, it acquired Symantec's enterprise security business for $10.7 billion. Now, the acquisition of Broadcom and VMware will become the largest case in Broadcom's history. Broadcom hopes to diversify its future development in the enterprise software field through this acquisition.
The UK regulatory authorities expressed concerns in March that the transaction may make servers more expensive and stated that they will now consult on its temporary approval, with a final report scheduled to be released before September 12th. CMA has previously stated that it has addressed concerns that if the products of the merged Broadcom company do not work well with VMware's server virtualization software, the transaction may harm Broadcom's competitiveness.
Broadcom welcomes the approval and expects to complete the transaction within this fiscal year.