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UK to examine Broadcom’s $61 billion VMware deal in depth
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(Reuters) – Britain said it would investigate Broadcom’s acquisition of VMware in depth after the U.S. chipmaker offered no immediate undertakings in response to its concerns about the impact of the $61 billion deal on the server market.
(Reuters) – Britain said it would investigate Broadcom’s acquisition of VMware in depth after the U.S. chipmaker offered no immediate undertakings in response to its concerns about the impact of the $61 billion deal on the server market.
Britain’s Competition and Markets Authority said earlier this month that Broadcom’s acquisition of the cloud computing and virtualisation company could drive up the cost of computer parts and software for servers.
It said on Wednesday that Broadcom had declined to offer any undertakings in the five-day period after it published its concerns, and it would therefore proceed to an in-depth inquiry, which can take up to six months.
Broadcom said earlier this month that it was working constructively with the regulator and it would demonstrate that the deal would enhance competition and would benefit businesses and consumers.
(Reporting by Sinchita Mitra in Bengaluru and Paul Sandle in London; Editing by Anil D’Silva and William James)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
A regulatory inquiry is an investigation conducted by a regulatory body to assess compliance with laws and regulations, often concerning market practices.
The server market refers to the industry involved in the production, sale, and maintenance of servers, which are powerful computers that manage network resources.
Computer parts are the individual components that make up a computer system, including the motherboard, CPU, RAM, storage devices, and power supply.
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