Takeover of VMware by Broadcom: Brussels gives itself until June 21 to decide

The epilogue of the file concerning the mega-acquisition of VMware by Broadcom for 61 billion dollars is still awaited. Initially, the European Commission hoped to complete its in-depth investigation into the operation in the spring, to deliver its verdict by May 11, 2023. Finally, the final decision is expected by June 21 at the latest.

By pushing back this deadline, Brussels wants to give itself more time to analyze the competition problems identified during the preliminary investigation. According to sources familiar with the matter quoted by Reuters, the European Commission should in the coming weeks warn Broadcom of the potential anticompetitive effects of the agreement supposed to allow it to take control of VMware.

A sign that the investigations carried out by regulators, both in Europe and in the United States, are weighing on the acquisition process, Broadcom and VMware have agreed to postpone the finalization of the takeover to May 26, 2024, i.e. twelve months late. on the original schedule. By allowing itself so much time, Broadcom hopes to give enough guarantees to the regulators to convince them to validate the operation. This should allow the semiconductor giant to diversify its activities by offering a specialist in virtualization software.

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