- To diversify its business into enterprise software, the US chipmaker Broadcom Inc AVGO agreed to acquire a cloud computing company in May VMware Inc VMW for $61 billion.
- The company is seeking early antitrust approval from the European Union by pointing out the competition Amazon.com Inc AMZN, microsoft corp MSFTand alphabet inc WELL Google.
- Tech deals have come under intense scrutiny from concerned regulators around the world energy concentration, Reuters reported.
- “This (deal) creates more competition in the cloud market, where there are now very big players. That doesn’t have to go to phase two at all,” the report quoted one of those familiar with the matter as referring to the European Commission’s four-month phase two investigation.
- “For the Commission to move to phase two, there has to be a real competition issue – horizontal, vertical, foreclosure risk – and I think we can show that those risks don’t really exist in this case,” the report added.
- “What we’ve seen over the last five years is an exponentially growing competitive pressure on VMWare from competitors that the Commission hasn’t considered,” the report quotes another person, referring to Amazon, Microsoft and Google, the top three cloud service providers.
- “This should be a first phase of the investigation, based on facts,” the person said, referring to the preliminary EU merger review.
- price action: AVGO shares traded up 1.61% at $433.99 on the last check Monday in the pre-market.
- Photo via company
© 2022 Benzinga.de. Benzinga does not provide investment advice. All rights reserved.
Read full story here https://www.benzinga.com/m-a/22/10/29282416/broadcom-seeks-early-european-approval-for-vmwares-61b-buyout
