The European Commission (EC) has concluded its initial investigation into the proposed acquisition of VMware by Broadcom, raising concerns that the deal could harm competition in the European chip market.
The EC’s initial findings suggest that the acquisition could have an impact on competition in the market for Fibre Channel Host Bus Adapters (FC HBA) processors and storage adapters. These components are often used in conjunction with VMware’s virtualization software, and the EC is concerned that Broadcom’s competitors may be denied access to the software, leading to higher prices and reduced innovation.
The EC has notified Broadcom of its findings and has given the company the opportunity to respond. A final decision on the proposed acquisition is expected to be issued by the end of June.
The $61 billion deal, which was due to be completed in February, has been delayed by various competition investigations. In addition to the EC, the UK and US competition authorities are also looking into the deal. Broadcom now expects the acquisition to close by October 30 this year.
