UK to examine Broadcom’s $61 billion VMware deal in depth

(Reuters) – Britain said it would investigate Broadcom’s acquisition of VMware in depth after the U.S. chipmaker offered no immediate undertakings in response to its concerns about the impact of the $61 billion deal on the server market.

Britain’s Competition and Markets Authority said earlier this month that Broadcom’s acquisition of the cloud computing and virtualisation company could drive up the cost of computer parts and software for servers.

It said on Wednesday that Broadcom had declined to offer any undertakings in the five-day period after it published its concerns, and it would therefore proceed to an in-depth inquiry, which can take up to six months.

Broadcom said earlier this month that it was working constructively with the regulator and it would demonstrate that the deal would enhance competition and would benefit businesses and consumers.

(Reporting by Sinchita Mitra in Bengaluru and Paul Sandle in London; Editing by Anil D’Silva and William James)