Shares of Broadcom Inc. (NASDAQ: AVGO) dropped over 1.27% to $590.99 in last trading session after competition and markets authority of the United Kingdom announced on Wednesday that it was looking into Broadcom Inc.’s (NASDAQ: AVGO) proposed $61 billion acquisition of VMware Inc. (NYSE: VMW), The CMA stated in a news release that a phase 1 decision must be made by March 22; however, the agency does not promise that a decision would be made public by that date. The European Commission said in December that it was also looking into the acquisition because it would “enable Broadcom to restrict competition in the market for certain hardware components which interoperate with VMware’s software.”
The first part of an inquiry into the $61 billion acquisition of cloud computing company VMware Inc. by American chipmaker Broadcom Inc. was announced by Britain’s competition watchdog on Wednesday.
The Competition and Markets Authority (CMA) said in November that it was looking into whether the merger of the two U.S.-listed businesses may seriously harm competition in the United Kingdom. It added that it had until March 22 to make a decision.
The Broadcom-VMware agreement, which represented the chipmaker’s attempt to diversify into the corporate software market, was one of the most significant announcements made internationally in 2022.
Regulators from all around the world have been closely monitoring tech mergers due to worries about the concentration of too much market power in a small number of companies and the potential for larger organizations to acquire startups just to shut them down. Requests for comment from Reuters were not immediately answered by VMware or Broadcom.
Broadcom Inc. as its upcoming earnings report approaches. Analysts predict that Broadcom Inc. will announce earnings of $10.15 per share in that report. This would represent growth of 20.98% from last year. According to our most current average estimate, quarterly revenue will be $8.9 billion, up 15.5% from the same period last year.
Analyst forecasts for Broadcom Inc. may have recently changed, which investors may also note. These updates support the idea that short-term business trends are dynamic. As a result, optimistic estimate revisions show analyst confidence in the company’s operations and profitability.
