We have a date for when the Commission is set to decide the fate of the acquisition.

Edward Gately, Senior News Editor

June 12, 2023

2 Min Read
Broadcom-VMware acquisition Update
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Broadcom could finally be getting a key regulatory approval of its planned $61 billion VMware acquisition.

The European Commission reportedly is set to provide conditional antitrust approval, according to Reuters, citing people familiar with the matter. The Commission’s clearance is tied to Broadcom’s interoperability remedies to address competition concerns. One focuses on Fiber Channel Host-Bus Adapters (FC HBAs) and is targeted at rival Marvell Technology, one of the people said.

Look for the Commission to decide on Broadcom’s VMware acquisition by July 17.

We couldn’t reach Broadcom for comment. It’s unclear whether there are other regulatory approvals pending.

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.

In-Depth Investigation Into VMware Acquisition Impact

In December, the Commission opened an in-depth investigation to assess if Broadcom’s acquisition of VMware may restrict competition in the market for the supply of network interface cards (NICs), FC HBAs and storage adapters.

In addition, the Commission had concerns that Broadcom may hinder the development of SmartNICs by other providers, and start bundling VMware’s virtualization software with its own software and no longer offer VMware‘s virtualization software as a standalone product.

In April, the Commission said Broadcom may restrict competition for the supply of FC HBAs and storage adapters. It could do so by foreclosing competitors’ hardware by delaying or degrading their access to VMware’s server virtualization software.

Broadcom is the leading supplier of FC HBAs and storage adapters,” the Commission said. “The markets are very concentrated.”

Broadcom competitors could be hampered in their ability to compete in these markets, the Commission said. This, in turn, could lead to higher prices, lower quality and less innovation for business customers, and ultimately consumers.

The deal expands the depth of critical infrastructure solutions both companies can provide to enterprise customers. In addition, Broadcom is heavily expanding its software portfolio.

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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