Broadcom's $61 Billion Deal To Acquire VMware Gets EU Approval By CIOTechOutlook Team

Broadcom's $61 Billion Deal To Acquire VMware Gets EU Approval

CIOTechOutlook Team | Thursday, 13 July 2023, 03:38 IST

The proposed USD 61 billion acquisition of cloud computing business VMware by computer chip and software maker Broadcom was approved by European Union regulators after they were appeased by concessions made to allay worries about competition. The sole opponent Marvell has currently, as well as any other prospective future rivals, according to the European Commission, the EU's executive arm and chief antitrust regulator, Broadcom made extensive obligations to provide access and system connections to them.

The commission claimed that because of the concessions, the contract would no longer give rise to concerns about competition. The 27-nation bloc's approval is contingent on Broadcom keeping its promises for ten years, with an independent trustee overseeing compliance.

A thorough investigation was started by the commission last year due to concerns that the use of Broadcom hardware and VMware software might prevent the use of competing technology. Still under investigation elsewhere is the agreement. The probe is being conducted by Britain's competition regulator, with a September 12 decision deadline.

Large organizations may combine public cloud access with internal company networks thanks to VMware's technology, which Broadcom hopes to use to gain a greater presence in the cloud computing market. Every major cloud provider and corporation, including Amazon, Google, and Microsoft, has tight ties to VMware.