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Exclusive-Broadcom set to win EU nod for $61 billion VMware deal, sources say
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BRUSSELS (Reuters) – U.S. chipmaker Broadcom is set to gain conditional EU antitrust approval for its $61 billion proposed acquisition of cloud computing firm VMware, people familiar with the matter said.
BRUSSELS (Reuters) – U.S. chipmaker Broadcom is set to gain conditional EU antitrust approval for its $61 billion proposed acquisition of cloud computing firm VMware, people familiar with the matter said.
The European Commission’s clearance is tied to Broadcom’s interoperability remedies to rivals to address competition concerns, the people said.
The EU antitrust watchdog, which is scheduled to decide on the deal by July 17, and Broadcom declined to comment.
One of the remedies focuses on Fibre Channel Host-Bus Adapters (FC HBAs) and is targeted at rival Marvell Technology, one of the people said. Marvell Technology did not respond to a request for comment.
FC HBAs are storage adapters that connect servers to storage located outside the server on a storage-area network using the fiber channel protocol, typically through a switch. Broadcom is a leading supplier of FC HBAs.
Broadcom supplies chips used in data centres for networking and specialised chips that speed up AI work.
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)
Antitrust approval refers to the legal permission granted by regulatory authorities to proceed with a merger or acquisition, ensuring that the transaction does not harm competition in the market.
Fibre Channel Host-Bus Adapters (FC HBAs) are hardware components that connect servers to external storage devices over a Fibre Channel network, facilitating data transfer and storage management.
Interoperability refers to the ability of different systems, devices, or applications to work together and exchange information seamlessly, enhancing functionality and user experience.
Cloud computing is the delivery of computing services over the internet, allowing users to access and store data and applications on remote servers instead of local computers.
A merger is a business transaction where two companies combine to form a single entity, often to enhance competitiveness, expand market reach, or achieve synergies.
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