Britain’s Competition and Markets Authority (CMA) said American chipmaker Broadcom’s acquisition of VMware could drive up server costs. If the agency’s concerns aren’t allayed, the $61 billion deal will come under scrutiny. Reuters.
Last year, Broadcom agreed to buy virtualization and cloud computing company VMware to diversify into enterprise software. The CMA said the deal could slow industry innovation and lead to a rise in prices for computer components and software in the server segment.
The regulator gave Broadcom five business days to resolve this issue and will decide within five business days to review the deal further. Broadcom said it is working constructively with CMA and is confident that any issues can be resolved.
Doubts about a potential deal between Broadcom and VMware were previously raised by the European Commission, where they also decided to conduct an in-depth review of the likely implications. The EU competition commissioner promised to announce the final decision by June 21.