Broadcom’s $69 billion acquisition of software company VMware faces some hurdles. In addition to the European Union’s usual phase 1 investigation, several sources tell the Financial Times there will be a phase 2 investigation. Stage 1 usually takes several months, and this research is usually done for large purchases.
Phase 2 is an in-depth study due to concerns about the competitiveness of the global tech industry. This could take more than a year, and that’s why Nvidia won’t let it buy Arm. A few VMware customers are concerned about possible price increases. Prices would also increase when CA Technologies and Symantec were acquired in 2018 and 2019.
Broadcom states that this is a merger of two companies in different industries, not two rivals. A formal application to competition authorities is expected by the end of the summer. An investigation is also expected from the USA, the UK and China have not yet made a statement on this issue.
Despite these hurdles yet to be overcome, Broadcom’s CEO has already prepared ambitious plans for VMware.
Source: Ars Technica
Source: Hardware Info
