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EU to green light Broadcom's VMware deal on Wednesday, source says

Published 07/11/2023, 02:41 PM
Updated 07/11/2023, 03:47 PM
© Reuters. FILE PHOTO: A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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By Foo Yun Chee

BRUSSELS (Reuters) -U.S. chipmaker Broadcom (NASDAQ:AVGO) is set to win conditional EU antitrust approval for its $61 billion proposed acquisition of cloud computing firm VMware (NYSE:VMW) on Wednesday, a person familiar with the matter said on Tuesday.

Last month, Reuters reported exclusively that Broadcom had succeeded in addressing the European Commission's concerns regarding its Fibre Channel Host-Bus Adapters (FC HBAs) by offering an interoperability remedy to rival Marvell (NASDAQ:MRVL) Technology.

Broadcom is a leading supplier of FC HBAs, which are storage adapters that connect servers to storage located outside the server on a storage-area network using the fiber channel protocol.

The VMware deal is Broadcom's largest-ever acquisition as it looks to diversify into enterprise software.

© Reuters. FILE PHOTO: A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The European Commission declined to comment.

The U.S. Federal Trade Commission and the UK competition agency are also examining the deal.

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