The EC has reached an initial conclusion in its investigation into Broadcom’s proposed acquisition of VMware. It is feared that the acquisition will jeopardize market competition.
In the first findings, the EC states that the proposed acquisition may have an impact on competition in the European chip market. Especially this concerns the competition in the market for FC HBA processors and storage adapters.
FC HBA processors and storage adapters can often be combined with VMware virtualization software. The EC fears that Broadcom chip competitors may restrict or delay access to VMware software.
Broadcom is a major player for NIC modules, FC HBA processors and storage adapters. Restricting access to VMware for other manufacturers would lead to higher prices and complicate innovation.
The EC is also investigating whether Broadcom may no longer offer the VMware platform standalone. No announcements have been made about this now.
Broadcom may object
Broadcom has been informed of the findings and will have the opportunity to respond. The EC is expected to give a final opinion on the possible takeover at the end of June.
The acquisition, valued at EUR 57 billion (USD 61 billion), should have been seized in February, but has been delayed by various competition investigations.
In addition to the EC, the competition authorities in the UK and the USA are also investigating the deal. Broadcom now expects the acquisition to become final by October 30 this year.
