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UK Regulators Will Review Broadcom/VMware Deal

UK regulators have said they will review Broadcom's planned purchase of VMware, creating a potential obstacle to the deal....
UK Regulators Will Review Broadcom/VMware Deal
Written by Staff
  • UK regulators have said they will review Broadcom’s planned purchase of VMware, creating a potential obstacle to the deal.

    Broadcom announced in May its plans to purchase VMware for $61 billion. The news sparked a wave of resignations, as well as general angst, with no one really knowing what to expect.

    According to a notice on its website, the UK’s Competition and Markets Authority (CMA) plans to conduct a review of the deal over competition concerns:

    The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

    The UK has already proven itself more willing to undo deals and acquisitions over competitive concerns, such as forcing Meta to sell off Giphy after buying the company for $400 million. Only time will tell if the Broadcom/VMware deal will survive regulators’ scrutiny.

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