Broadcom plans to apply for the European Union for approval of US $ 61 billion VMware acquisition case

According to reports on October 17, it is reported that people familiar with the matter revealed that Broadcom, a U.S. chip manufacturer, will apply for EU antitrust supervisors to approve the EU's antitrust supervisors early to approve the $ 61 billion to acquire cloud computing company VMware as soon as possible Essence

This transaction was announced in May this year, which is also the second largest M & A transaction in the world since this year, marking the diversification of Broadcom's efforts in the enterprise software field.

Worried that the entire science and technology industry was highly dominated by several large companies, and after the acquisition of startups in large companies, large companies may close it directly, resulting in close review of scientific and technological transactions in the face of regulators around the world.

"The transaction will create more competition in the cloud computing market. There are currently some very large companies in this market. They do not have to enter the second stage at all." One of the people familiar with the matter said that he refers to the four -month EU Long -term investigation in the second stage.

The insider said: "Only when there are real competition issues, such as horizontal, vertical, and redeemed risks, the European Commission will enter the second stage of review. I think we can prove that these risks do not exist in this case."

Broadcom has not yet approved the transaction to the EU.

The company said: "We are still advancing the acquisition and submitting regulatory documents from all over the world. The current progress meets expectations."

The European Commission said in the acquisition of Dell in 2016 for Dell's total amount of data storage company EMC 67 billion US dollars that EMC's VMware has a strong position, but it has no ability, and he has no motivation to reject competitors.

Another person familiar with the matter said: "In the past 5 years, some competitors we have not considered the competitive pressure of VMware have increased rapidly." He refers to Amazon, Microsoft, Google, which is the top three in the cloud computing industry at present Big provider.

The insider mentioned in the EU's preliminary mergers and acquisitions review: "This should be based on the first step of investigation."