At the end of May, it became known that the manufacturer of the Bradcom telecommunications components was going to buy a VMware company specializing in virtualization software for $61 billion. Information sources report that European regulators see no reason to initiate the second phase of harmonization, and that everything can be limited to the first, approaching the time of the transaction.
According to the example of a broken deal between NVIDIA and Arm, acquisitions of this magnitude are often of regulatory concern. According to Reuters, in the case of a potential deal between Broadcom and VMware, European officials felt that it would only increase competition in a market where giants like Amazon, Microsoft and Google are already present.
In these circumstances, European regulators see no point in starting the second phase of a deal that can last up to four months. The two stages of a deal are negotiated only when they are capable of creating a real competition problem in the market. In this situation, the purchase of VMware by Brodcom does not create such risks. The latter simply noted that the reconciliation process is proceeding in accordance with expectations.