Broadcom Inc. (NASDAQ: AVGO) surges over 1.2% in pre trading session on Wednesday as the Britain declared it will thoroughly look into Broadcom’s acquisition of VMware, Inc. (NYSE: VMW) after the US chipmaker made no quick commitments in response to its worries about the $61 billion deal’s effects on the server sector.
The purchase of the cloud computing and virtualization firm by Broadcom, according to Britain’s Competition and Markets Authority, may increase the price of server hardware and software. On Wednesday, it said that Broadcom had neglected to make any commitments in the five days after the publication of its concerns. As a result, it would move through with an extensive investigation, which might take up to six months.
Broadcom stated earlier this month that it was cooperating positively with the regulatory body and will show how the agreement would increase competition, help companies and consumers, and boost enterprises.
Britain declared it will thoroughly look into Broadcom’s acquisition of VMware after the US chipmaker made no quick commitments in response to its worries about the $61 billion deal’s effects on the server sector.
The purchase of the cloud computing and virtualization firm by Broadcom, according to Britain’s Competition and Markets Authority, may increase the price of server hardware and software.
On Wednesday, it said that Broadcom had neglected to make any commitments in the five days after the publication of its concerns. As a result, it would move through with an extensive investigation, which might take up to six months.
Broadcom stated earlier this month that it was cooperating positively with the regulatory body and will show how the agreement would increase competition, help companies and consumers, and boost enterprises.
The US chipmaker Broadcom’s $69 billion acquisition of cloud computing software provider VMware might increase the cost of computer servers, according to the UK competition authority, which warned that it may initiate a thorough investigation if its concerns are not addressed.
The largest purchase in Broadcom history, if granted, might “lead to less innovation and push up the cost of computer components and software” used by the government, banks, and telecommunications, the Competition and Markets Authority said on Wednesday.
The UK regulator revealed that it was contemplating conducting a thorough examination into the alliance after discovering that it would harm competition and provide a potential obstacle to the historic merger that was announced last year. The partnership is also being investigated by US and European competition authorities.
