Broadcom, the chipmaker, has obtained antitrust approval from the European Union (EU) for its proposed acquisition of VMware, worth $61 billion. To address concerns raised by rival Marvell Technology, Broadcom offered remedies that satisfied the EU’s requirements.
This landmark deal represents Broadcom’s largest-ever acquisition and marks its expansion into the enterprise software sector, diversifying its business.
As part of the approval process, Broadcom committed to providing interoperability commitments to Marvell and other competitors concerning its Fibre Channel Host-Bus Adapters (FC HBAs), which are storage adapters. These commitments grant rivals guaranteed access to interoperability application programming interfaces (APIs), materials, tools, technical support, and the source code for all of Broadcom’s current and future FC HBA drivers through an irrevocable open-source license.
Company has obtained legal merger clearance in Australia
Margrethe Vestager, the EU’s antitrust chief, stated that the commitments offered by Broadcom ensure that Marvell, as its sole rival, can continue competing on equal terms and that future entrants receive similar protection.
In addition to the EU approval, the US Federal Trade Commission and the UK competition agency are also reviewing the acquisition.
Broadcom provided an update, mentioning progress with regulatory filings in various jurisdictions worldwide. The company has obtained legal merger clearance in Australia, Brazil, Canada, the EU, South Africa, and Taiwan, as well as foreign investment control clearance in all necessary jurisdictions.
With EU antitrust approval secured, Broadcom moves one step closer to finalizing its significant acquisition of VMware.
