The takeover of VMware by Broadcom under the spotlight

Broadcom wants to acquire VMware for the modest sum of 61 billion dollars. However, antitrust authorities in the EU and Britain are taking a closer look at the planned deal. This aligns with the fact that the North American Federal Trade Commission (FTC) had already announced a more detailed review of the takeover in October 2022.

If VMware doesn’t tell you anything: the company is active in the B2B sector and is one of its most important players, offering virtualization software for servers and cloud solutions. Broadcom instead makes chips for modems, Ethernet controllers, etc., but is trying to consolidate its software business with the takeover. Although you rarely come into direct contact with Broadcom as a private customer, the manufacturer is one of the largest chipmakers.

Broadcom has set itself the goal of completing the acquisition of VMware by October 2023. The shareholders had already given their consent. It goes without saying that Broadcom itself sees no threat to competition. It remains to be seen whether antitrust authorities in the EU and Britain will come to the same conclusion. According to documents from the European Commission, a decision will now be made by December 20, 2022 on whether the review will be completed in phase 1 or if there will be a more in-depth phase 2. The UK Competition and Markets Authority (CMA) will do the same.

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