UK’s CMA provisionally clears Broadcom’s acquisition of VMware

The Competition and Markets Authority said on Wednesday that it has provisionally cleared chip maker Broadcom’s $69bn (£53.4bn) proposed takeover of VMware.

The watchdog had said in March that the deal raised competition concerns and could make servers more expensive.

However, following an in-depth review, it said on Wednesday: "After examining the evidence gathered from Broadcom, VMware and other interested parties, an independent CMA panel has provisionally found the deal would not substantially reduce competition in the supply of server hardware components in the UK."

The CMA will consult on its provisional view and issue a final report by 12 September.

Richard Feasey, chair of the independent inquiry panel carrying out the investigation, said: "Computer servers - often using the products of Broadcom and VMware - play a critical role in enabling us to work in the office or at home or to access TV shows or use banking services.

"That’s why it’s important we investigate this deal to ensure that UK businesses continue to benefit from competition and innovation in the supply of server components. After carefully considering a broad range of evidence, we have provisionally found that this deal would not harm competition."