Broadcom's $61 Billion 2025 VMWare Acquisition Secures European Regulatory Green Light
European regulators have approved Broadcom's landmark $61 billion acquisition of VMWare, driving Broadcom shares to record highs and signaling a major shift in the multi-cloud software market.
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Highlights of the Deal
- European Commission grants approval for Broadcom's $61 billion VMWare acquisition.
- Broadcom shares surged to historic highs following the announcement.
- Pending approvals remain from U.S. Federal Trade Commission and U.K. regulators.
Broadcom Inc. (AVGO) saw its stock price reach unprecedented levels after the European Commission (EC) gave conditional approval to its $61 billion takeover of VMWare (VMW), a leading software provider. This milestone marks a significant step forward in the consolidation of cloud infrastructure technologies.
Following a comprehensive review, the EC concluded that the merger would largely preserve market competition. However, Broadcom must implement specific measures concerning Fiber Channel Host-Bus Adapters (FC HBAs) to safeguard competitors like Marvell Technology (MRVL) and other emerging players.
Margrethe Vestager, EC’s executive vice president overseeing competition policy, emphasized that Broadcom's commitments ensure that Marvell and future entrants maintain a level playing field within the industry.
Broadcom stated that the acquisition is poised to empower customers by accelerating growth and innovation within the multi-cloud ecosystem, expanding choices and fostering heightened competition.
In addition to European clearance, the merger has received legal approvals in Australia, Brazil, Canada, South Africa, and Taiwan, alongside foreign investment controls in all required regions.
Despite these advances, the deal still awaits the green light from the U.S. Federal Trade Commission and British regulatory authorities.
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