Broadcom achieves EU clearance for $61 billion merger with VMware
Broadcom’s Acquisition of VMware Approved by EU
Broadcom has reached a significant milestone in its $61 billion acquisition of VMware, receiving approval from the EU’s European Commission. The merger has passed scrutiny after thorough examination to address potential competitive issues. The Commission determined that Broadcom’s influence would be restricted, and certain measures could promote fair competition going forward.
Requirements for the Merger
The EU regulator has set forth conditions for Broadcom to prevent any anti-competitive practices. Broadcom will be required to provide third parties with tools necessary for creating compatible Fiber Channel adapters and share driver source code. This is aimed at ensuring seamless compatibility with VMware’s server virtualization technology.
Implications of the Deal
If the acquisition goes through, it will stand as one of the largest in the tech sector. This move would allow Broadcom to broaden its footprint in enterprise software and potentially strengthen its position in the corporate landscape. The deal represents a strategic shift for Broadcom following its failed attempt to acquire Qualcomm in 2018.
