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Broadcom (NASDAQ: AVGO) will receive an antitrust warning from the European Union in connection with its planned $61 billion acquisition of VMware (New York Stock Exchange: VMW) In the next weeks.
The European Commission will reveal its concerns about the agreement in a statement of charges, according to a Reuters report of the previous Monday, which quoted well-known people. Broadcom (AVGO) is expected to offer potential solutions only after receiving the charge sheet from the European regulator, although no asset sales are likely to be offered.
The report comes after the European Union said in December it would open an “in-depth” investigation into the VMware (VMW) transaction. The EC said it was “particularly concerned” that the deal could allow Broadcom (AVGO) to restrict competition for certain hardware components that run on VMware (VMW) software.
The EC is ready to decide on the VMware/Broadcom transaction before the June 7 deadline.
In January, the UK Competition and Markets Authority said it would investigate the VMware (VMW) deal.
In May, Broadcom (AVGO) announced that it would acquire VMware (VMW) for $61 billion in cash and stock.