Broadcom Clears EU Hurdle for $61 Billion VMware Acquisition

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U.S. chipmaker Broadcom has received approval from the European Union antitrust authorities for its $61 billion acquisition of VMware, a cloud computing firm. This approval follows Broadcom’s commitment to offering remedies to assist its rival, Marvell Technology, and other competitors in maintaining fair competition.

To secure the approval, Broadcom provided several commitments related to its Fibre Channel Host-Bus Adapters (FC HBAs). These commitments include:

Broadcom guaranteed Marvell and other rivals access to interoperability Application Programming Interfaces (APIs) and the necessary materials, tools, and technical support for the development and certification of third-party FC HBAs.

Competitors will have guaranteed access to the source code for all of Broadcom’s current and future FC HBA drivers through an irrevocable open-source license.

These measures are designed to ensure that Marvell and any potential future competitors can compete effectively on equal terms. EU antitrust chief Margrethe Vestager emphasized that these commitments would enable Marvell to continue competing and offer similar protection for future market entrants.

The approval from the EU is a significant step in the regulatory process for Broadcom. However, the deal is still under review by the U.S. Federal Trade Commission and the UK competition agency. Broadcom has already secured legal merger clearance in several other jurisdictions, including Australia, Brazil, Canada, South Africa, and Taiwan, as well as foreign investment control clearance in all necessary areas.

Broadcom’s acquisition of VMware marks its largest deal to date and is aimed at diversifying the company’s portfolio into enterprise software. The successful implementation of the proposed remedies is crucial for ensuring competitive balance and innovation in the market.