US semiconductor manufacturer Broadcom is soon expected to receive conditional EU antitrust approval for its $61 billion acquisition of cloud computing firm VMware. This news has caused the company’s shares to rise by nearly 5%. However, this approval is conditional upon Broadcom agreeing to remedies regarding interoperability with rivals to address concerns around competition. The European Commission is set to make a final decision on the matter by July 17. Meanwhile, Broadcom’s acquisition of VMware is also being investigated by the US Federal Trade Commission, and the British competition authority will announce its provisional findings about the deal and potential remedies in the coming month.
Broadcom’s proposed acquisition of VMware is its biggest deal yet and is aimed at diversifying the company’s portfolio into enterprise software. The company supplies chips used in data centers for networking and specialized chips that accelerate AI work.
One of the remedies that Broadcom must agree to is related to Fibre Channel Host-Bus Adapters (FC HBAs). This remedy specifically targets competitor Marvell Technology. FC HBAs are storage adapters that enable servers to connect to external storage on a storage-area network using the fiber channel protocol, usually through a switch. Broadcom is a leading supplier of these adapters.
As for the British competition agency, its investigation into the Broadcom-VMware deal has caused some concern among companies since the agency blocked Microsoft’s Activision deal, while the EU approved it.
In terms of upcoming tech news, the annual Apple developer conference is just around the corner. From the company’s first mixed reality headset to new software updates, there’s a lot to look forward to at WWDC 2023. Listen to our discussion on everything we’re anticipating in the latest episode of our Gadget 360 podcast, Orbital. You can find it on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and wherever you get your podcasts.
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Deepak Sen is a tech enthusiast who covers the latest technological innovations, from AI to consumer gadgets. His articles provide readers with a glimpse into the ever-evolving world of technology.
