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UK Clears Broadcom’s $69B VMware Buy

 |  August 21, 2023

The UK’s competition regulator announced on Monday that it has approved the $69 billion acquisition of VMware by U.S. tech company Broadcom after conducting a thorough phase-2 investigation.

Back in July, the Competition and Markets Authority (CMA) initially granted provisional approval for the deal, stating that it would not have a detrimental impact on competition within the crucial computer server products sector.

The largest deal ever examined by the UK’s competition watchdog, valued at £54 billion ($69 billion), involving the consolidation of U.S. firms Broadcom and VMware, has received the green light without posing any adverse effects on UK competition.

Read more: Broadcom Set To Receive Approval For $61 Billion Acquisition Of VMware

In its comprehensive analysis, the Competition and Markets Authority (CMA) determined that there are “no concerns regarding competition,” leading to the clearance of this significant transaction. The regulatory body arrived at this decision following an extensive inquiry that addressed various areas of potential concern.

Broadcom specializes in computer chip manufacturing, while VMware operates as a cloud technology company. The CMA’s investigation included an evaluation of whether Broadcom’s ownership of VMware could lead to competitive espionage against other companies utilizing VMware’s services.

Source: Reuters