The European Union will launch an in-depth antitrust investigation into Broadcom’s acquisition of VMware. According to reports, the detailed investigation could delay the $61 billion deal by a year or more.
Chipmaker Broadcom has already started talks with the EU about the probe, according to three people familiar with the deal who spoke to the EU financial times. The EU will examine whether the takeover of the virtualization specialist announced last month could lead to “abusive behavior”.
According to the report, Broadcom could face a phase 2 EU antitrust investigation similar to the one launched after Nvidia attempted to buy British chip designer Arm in 2020. These investigations can take more than a year. For Arm, this delay contributed to the cancellation of the deal in January.