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UK Regulator Clears Broadcom Plan to Acquire VMware

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The Competition and Markets Authority in the U.K. said it has given the green light for U.S.-based computer chip and software maker Broadcom’s acquisition of cloud technology company VMware after determining that the deal does not weaken market competition.

Reports said regulators launched an investigation over concerns that the combination of the two technology companies would increase the cost of servers, lead to less innovation and lock out rival technology, reducing customer choice.

CMA reviewed stakeholder feedback, internal business documents, and input from other industry providers in its in-depth investigation, the second of a two-phased probe that began in November 2022.

Broadcom first announced plans to acquire VMware in May 2022. According to the company, it expects the transaction, valued up to more than $60 billion, to close by the end of October, after obtaining all the required regulatory approvals.

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