South Korea’s antitrust regulator, the Korea Fair Trade Commission (KFTC), announced conditional approval on Monday for the proposed acquisition of VMware Inc., a US infrastructure software firm, by Broadcom Inc., a US smartphone components maker. The approval comes after Broadcom’s announcement in May 2022 of its intention to acquire VMware for a substantial $61 billion in a combination of cash and stock, along with the assumption of $8 billion in net VMware debt.
This significant deal has been subject to regulatory scrutiny in countries where both companies maintain extensive business operations, including South Korea and China. The KFTC’s decision is contingent on certain conditions designed to ensure a fair marketplace.
Read more: Broadcom Set To Receive Approval For $61 Billion Acquisition Of VMware
The KFTC expressed concerns that VMware, a prominent player in the cloud computing and virtualization technology sector, may exploit its position to hinder interoperability certifications for components manufactured by Broadcom’s competitors. As a result, the conditional approval aims to safeguard competition in the market.
In addition, the South Korean antitrust body noted Broadcom’s dominant position in the Fiber Channel Host-Bus Adaptor (FC HBA) market. FC HBA technology is crucial for enabling connectivity and data transfer within FC-based storage area networks.
This conditional approval from South Korea represents a significant step in the complex acquisition process and demonstrates the regulator’s commitment to maintaining a competitive landscape within the industry. The deal will now move forward with these stipulated conditions, pending similar regulatory approvals in other countries.
Source: Ked Global
Featured News
European Music Streaming Firms Rally Against Apple’s Proposed Remedies
May 9, 2024 by
CPI
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI