© Reuters. UK’s CMA approves Broadcom’s (AVGO) deal to buy VMware (VMW)
Broadcom’s (NASDAQ:) acquisition of VMware (NYSE:) has been approved by the U.K.’s Competition and Markets Authority (CMA).
Following an extensive investigation, it was concluded that the deal would not significantly diminish competition in the supply of server hardware components, the watchdog said in a statement.
“Broadcom and VMware are US-based companies supplying hardware and software used by thousands of businesses and public bodies in the UK. Even if the UK market represents a small proportion of total sales in a merger, the CMA’s job is to scrutinise deals like this thoroughly to ensure they don’t harm competition in the UK,” said Richard Feasey, chair of the independent panel carrying out the Phase 2 inquiry.
“In this case, having carefully considered the evidence and found no competition concerns, we have concluded the deal can go ahead.”
The Broadcom-VMware deal is valued at $69 billion, making it the largest acquisition to be investigated by the CMA.
VMware shares rose 1% on the news.
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