Broadcom’s $61 Billion Acquisition of VMware Approved by EU with Remedies for Rival Marvell

Broadcom Receives EU Approval for $61 Billion Acquisition of VMware

Brussels, July 12 – U.S. chipmaker Broadcom has secured antitrust approval from the European Union (EU) for its proposed $61 billion acquisition of cloud computing firm VMware. The deal, which is Broadcom’s largest ever, will allow the chipmaker to diversify into enterprise software.

To address concerns about potential anti-competitive behavior, Broadcom offered remedies to help rival Marvell Technology. The EU competition enforcer confirmed that Marvell and other competitors will have guaranteed access to interoperability Application Programming Interfaces (APIs), materials, tools, and technical support necessary for the development and certification of third-party Fibre Channel Host-Bus Adapters (FC HBAs), a type of storage adapter.

Additionally, Marvell and other rivals 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 commitments ensure that Marvell can continue to compete on an equal footing and provide similar protection for any future entrants, according to EU antitrust chief Margrethe Vestager.

The U.S. Federal Trade Commission and the UK competition agency are also examining the deal. However, Broadcom stated that it is making progress with regulatory filings in various jurisdictions, having already received legal merger clearance in Australia, Brazil, Canada, the European Union, South Africa, and Taiwan, as well as foreign investment control clearance in all necessary jurisdictions.

Broadcom’s acquisition of VMware will not only strengthen its position in the chipmaking industry but also enable the company to expand into the growing enterprise software market.

What commitments has Broadcom made to address concerns about potential anti-competitive behavior in its acquisition of VMware?

EU Approves Broadcom’s $61 Billion Acquisition of VMware

U.S. chipmaker Broadcom has received antitrust approval from the European Union for its proposed $61 billion acquisition of cloud computing firm VMware. This landmark deal will allow Broadcom to diversify its offerings and venture into the enterprise software market.

To address concerns about potential anti-competitive behavior, Broadcom has made commitments to support rival company Marvell Technology. The European Union competition enforcer has confirmed that Marvell and other competitors will have guaranteed access to various resources, including interoperability Application Programming Interfaces (APIs), materials, tools, and technical support necessary for the development and certification of third-party Fibre Channel Host-Bus Adapters (FC HBAs), which are crucial for storage adaptation.

Furthermore, Marvell and other rivals will have access to the source code for all of Broadcom’s current and future FC HBA drivers via an open-source license. By providing these commitments, Broadcom ensures fair competition and protection for both established and potential future competitors, according to EU antitrust chief Margrethe Vestager.

While the U.S. Federal Trade Commission and the UK competition agency continue to review the deal, Broadcom has made progress in regulatory filings across different jurisdictions. It has already received legal merger clearance in Australia, Brazil, Canada, the European Union, South Africa, and Taiwan, as well as foreign investment control clearance in all necessary jurisdictions.

Broadcom’s acquisition of VMware not only strengthens its position in the chipmaking industry but also allows the company to expand into the rapidly-growing enterprise software market.