Madrid, August 21 (European Press) –
The UK’s Competition and Markets Authority (CMA) has approved an agreement to buy VMware from Broadcom, worth $69,000 million (€63,433 million), finding at the end of an in-depth investigation that the deal “does not significantly reduce competition” in the UK.
In this way, the independent commission responsible for conducting the in-depth investigation confirmed its decision that “the agreement does not substantially reduce competition”, which entitles it to proceed with the deal in the United Kingdom.
“In this case, after carefully looking at the evidence and finding no competition concerns, we concluded that the deal could proceed,” said Richard Vessey, chair of the independent panel conducting the in-depth investigation.
Last July, the Capital Markets Authority provisionally concluded that Broadcom’s agreement to buy VMware “will not impair competition” in supplying critical components for servers in the United Kingdom, after last March it decided to open an in-depth investigation into the deal after identifying competition concerns.
American integrated circuit maker Broadcom reached an agreement in May 2022 to acquire cloud software company VMware for $61 billion in cash and stock, in addition to collecting another $8 billion from the company’s debt.
The European Commission announced in July that it had agreed to Broadcom’s purchase of VMware, although it conditioned its agreement on Broadcom fulfilling all of its obligations to ensure competitors’ access to the interfaces and source code for the fiber-optic cards.
In order to respond to and greenlight Brussels’ skepticism, Broadcom has committed to ensuring that third parties have access to interoperable application interfaces as well as to the materials, tools, and technical support required to develop and certify FC HBAs. others.
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