US-based chipmaker, Broadcom is expected to receive conditional antitrust approval from the European Union for its proposed acquisition of cloud computing firm, VMware, amounting to $61 billion (nearly Rs. 5,03,000 crore), according to sources close to the matter. This news caused Broadcom’s shares to rise by almost 5%. It is understood that the EU clearance for this acquisition is subject to remedies made by Broadcom in relation to its interoperability with competitors, which is set to address competition concerns. Broadcom and the EU antitrust watchdog declined to comment on this matter.
Broadcom’s acquisition of VMware is the company’s biggest deal to date and is aimed at diversifying its business in enterprise software. However, the company still faces a challenge in the UK, where the British competition agency will announce its provisional findings about the acquisition next month and possible remedies required if needed. It is worth noting that companies have become more cautious about the Competition and Markets Authority (CMA) after it blocked Microsoft’s Activision deal, while it was cleared by the EU.
The primary remedy for Broadcom under the EU antitrust clearance focuses on Fibre Channel Host-Bus Adapters (FC HBAs), aiming to target rival Marvell Technology. Marvell did not respond to any request for comment. FC HBAs are storage adapters that connect servers to storage located outside the server on a storage-area network using the fiber channel protocol, mainly through a switch. Broadcom happens to be a leading supplier of FC HBAs.
Furthermore, the US Federal Trade Commission is also investigating Broadcom’s VMware acquisition.
(Apple’s annual developer conference is around the corner, and in this episode of Orbital, the Gadgets 360 podcast, we discuss all the things we’re looking forward to seeing at WWDC 2023, from the company’s first mixed reality headset to new software updates. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and wherever you get your podcasts.)
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
