According to Reuters, U.S. chipmaker Broadcom’s $61 billion deal to buy VMware will face a test, as EU antitrust regulators prepare to launch a full investigation.
The acquisition is the second largest in the world so far this year, highlighting Broadcom’s determination to diversify and transform its business, but unfortunately, this year comes at a time of intense scrutiny by global regulators.
Sources close to the matter told Reuters that Broadcom has been hoping for early EU approval of the deal. Earlier this week, the company also held what it called a status meeting with European Commission officials, who in turn voiced their concerns.
If the company fails to convince EU regulators of the benefits of the acquisition, they will launch a full four-month investigation after the initial review of the deal is complete.
The EU competition enforcement agency, which plans to complete its initial review on Dec. 20, declined to comment, while Broadcom said it expects the review process to take longer in other key regions because of the size of the deal, “but that said, we still believe the deal can be completed by the end of fiscal 2023.
