EU Regulators Approve Broadcom’s $61B Acquisition of VMware with Concessions to Address Competition Concerns
Computer chip and software manufacturer Broadcom has received approval from European Union regulators for its proposed $61 billion takeover of cloud technology company VMware. The European Commission, the EU’s executive body and primary antitrust authority, granted the approval after Broadcom made commitments to address competition concerns. These commitments include providing access and system connectivity to Marvell, Broadcom’s existing competitor, as well as any potential future rivals.
The approval is subject to Broadcom fulfilling its commitments over a 10-year period, with an independent trustee overseeing compliance. While the deal still faces scrutiny from other regulatory bodies, Broadcom aims to strengthen its presence in the cloud computing market, leveraging VMware’s technology that enables seamless integration of public cloud access and internal corporate networks.
VMware maintains partnerships with major cloud providers such as Amazon, Google, and Microsoft. In a separate development, the EU imposed a $475 million fine on U.S. biotech firm Illumina for its acquisition of cancer screening company Grail without regulatory approval.