MRVL - Broadcom set to win European antitrust approval for VMware purchase - report

2023-06-12 09:02:46 ET

Broadcom ( NASDAQ: AVGO ) is expected to win conditional European Union antitrust approval for its planned $61 billion acquisition of cloud computing company VMware ( NYSE: VMW ).

Approval of the deal is conditioned on Broadcom's interoperability remedies to rivals that address the European Commission's antitrust issues, according to a Reuters report on Monday , which cited people familiar.

One of the remedies concerns Fibre Channel Host-Bus Adapters (FB HBAs) and is targeted at rival Marvell Technology ( MRVL ), according to the report.

Broadcom ( AVGO ) submitted remedies to the European Commissio n on May 16, and a market test of the remedies is underway, according to reports from Dealreporter and CTFN. The EC has a July 17 deadline to make a decision on the deal.

The Reuters report comes as the deal is also being probed by the U.S. Federal Trade Commission as well as the UK's antitrust regulator. In late March, the UK's Competition and Markets Authority moved its review of VMware/Broadcom into a Phase 2, or an in-depth investigation .

Dealreporter on Friday said that Broadcom ( AVGO ) is waiting to hear back from the European antitrust regulators on the VMWare before responding to the FTC second request.

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