6/23/2022, 3:39 PM (Source: TeleTrader)
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EU to investigate $69B Broadcom-VMware deal

The European Commission is preparing to launch a lengthy investigation into Broadcom's $69 billion acquisition of VMware due to competition concerns, according to a report published by the Financial Times on Thursday.

Sources familiar with the matter noted that one of the largest mergers in the tech industry's history would be probed for "abusive behavior," including the possibility of leading to Broadcom rising prices of its products. The first phase of the Commission's investigation is expected to last for a couple of months. However, sources revealed the second phase could follow and extend the process endangering the whole agreement.

Nvidia's proposal to buy Arm was scrapped earlier this year over a similar probe. Meanwhile, antitrust authorities in the United States, the United Kingdom, and China could also launch separate investigations into the Broadcom-VMware deal, the report concluded.

Baha Breaking News (BBN) / ND