The European Commission has announced that it is extending its decision timeline on Broadcom’s proposed $61 billion acquisition of VMware by two weeks, to June 21. By offering this extension, the EU is facilitating a thorough assessment of the situation to ensure fair marketplace competition.
The EU competition watchdog said the extension was agreed upon with Broadcom, which is looking to diversify into enterprise software.
Related: EU May Give Early Greenlight To Broadcom VMware Deal
The Commission is expected to warn Broadcom about potential anti-competitive effects of the proposed deal in the coming weeks, sources close to the matter have told Reuters.
Announced in May of 2022, the deal is the second biggest globally so far this year and marks Broadcom’s attempt to diversify its business into enterprise software.
Tech deals have drawn intense scrutiny from regulators around the world concerned about power being concentrated in a few players and the possibility of bigger companies acquiring startups only to shut them down.
