Broadcom’s $69 billion acquisition of cloud software company VMware faces a lengthy antitrust probe in Brussels over regulatory concerns the deal could hurt competition in the global tech industry.
Broadcom is already in preliminary talks with EU officials, who will investigate concerns the merger could lead to abusive behavior, including possible future price hikes by the US chipmaker, three people with direct knowledge of the transaction said.
Many large acquisitions undergo a similar process, known in EU circles as the “Phase 1” investigation, which typically takes a few months.
But those close to the situation suggest EU authorities plan to move ahead with a more detailed “Phase 2” investigation, which could take well over a year and ultimately derail the deal altogether. Nvidia finally backed out of a proposed $66 billion purchase of chip designer Arm.