UK watchdog probes Broadcom's VMware takeover

Britain's competition watchdog said on Monday local time that it was investigating whether U.S. chipmaker Broadcom's $61 billion acquisition of cloud computing company VMware would significantly lessen competition.

According to Reuters, the deal between Broadcom and VMware was announced in May, marking Broadcom's attempt to diversify its business into the enterprise software field. -Cloud), cloud-native software development and pricing, and the addition of VMware in the future will provide a set of software and hardware solutions to meet enterprise cloud needs.

In addition, Broadcom is also seeking antitrust approval from the European Union. Broadcom stated that "this transaction will not bring about any competition issues, we are confident in this, and look forward to working with the European Commission throughout the process." The company expects the cooperation to be completed in fiscal year 2023.

It is reported that the British Competition and Markets Authority will solicit opinions from relevant parties before December 6 to help it assess whether to formally investigate the Broadcom-VMware transaction.