The UK has decided to conduct a thorough investigation into Broadcom’s acquisition of VMware. This decision comes after the US chipmaker did not provide any immediate assurances regarding the potential effects of the $61 billion deal on the server market.
The Competition and Markets Authority of Britain stated that the acquisition of the cloud computing and virtualization company by Broadcom may result in an increase in the price of computer parts and server software.
After the publication of its concerns, Broadcom did not offer any assurances during the five-day period. Therefore, an in-depth investigation will be conducted, which may last up to six months.
Broadcom stated they were collaborating with the regulator and would provide evidence that the agreement would improve competition and be advantageous for both businesses and consumers.