The Competition and Markets Authority has cleared Broadcom’s $69bn purchase of VMware following its Phase 2 investigation.
Initial competition and innovation concerns were raised following an initial Phase 1 investigation, citing warranting an in-depth review considering new evidence and stakeholder feedback.
This has concluded that Broadcom’s proposed purchase of VMware would not substantially reduce competition in the supply of server hardware components in the UK as the potential financial benefit to Broadcom and VMware of making rival products work less well with VMware’s software would not outweigh the potential financial cost in terms of lost business.
The panel also considered whether the deal could harm innovation but states that this is unlikely to be a concern, since information about new product adaptations only needs to be shared with VMware at a stage when it is too late to be of commercial benefit to Broadcom.
Richard Feasey, chair of the independent panel carrying out the Phase 2 inquiry, said: “Broadcom and VMware are US-based companies supplying hardware and software used by thousands of businesses and public bodies in the UK.
“In this case, having carefully considered the evidence and found no competition concerns, we have concluded the deal can go ahead.”