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British Antitrust Law Firm Launches Investigation into Broadcom Purchase of VMware.

Published: 2023-01-26

The British antitrust regulator has announced the launch of the first phase of an investigation into the $61 billion purchase of U.S. chip maker Broadcom, a virtualization company known for its virtualization solutions, VMware.


Britain's Competition and Markets Authority (CMA) said in November that it intends to investigate whether a merger between two US companies could have a material negative impact on competition in the UK. The department added that the decision must be made before March 22 this year.


The Broadcom‒VMware deal is one of the largest announced in the IT market in 2022. As you know, a major American chip developer intends to diversify its business by gaining access to the corporate software market, where VMware also dominates its niche.


Deals by tech giants have traditionally attracted the attention of regulators around the world, as they fear the concentration of large market share and technology in the hands of a few companies. Reuters reminds that sometimes the largest market players even buy up promising startups only to close them, actually destroying competitors, at the same time taking possession of their technologies.


Broadcom and VMware have not yet commented on the situation, but it is already known that an investigation into the circumstances and consequences of the transaction was quite expected. At the end of December, the European Commission announced an in-depth investigation into the same agreement, at the same time it was already expected that the deal would also be of interest to British regulators.