EC sends questionnaires to customers and competitors on Broadcom’s VMware acquisition

Breaking News 18 November

EC sends questionnaires to customers and competitors on Broadcom’s VMware acquisition

The European Commission (EC) has sent out questionnaires querying customers and competitors on the impact of Broadcom’s [NASDAQ:AVGO] acquisition of VMware [NYSE:VMWA], according to two sources familiar with the matter.

On Tuesday (15 November), Broadcom notified its acquisition of the California-based maker of virtualisation software to the EC. The EC has a provisional Phase I deadline of 20 December.

The EC sent out the questionnaires following notification, noted the two sources. There are several batches of questionnaires, targeting customers and competitors respectively, the first source noted, adding that the EC has set a deadline for late next week, at least to some of the third parties targeted.

The questionnaires are detailed and go beyond market definition, querying how close of competitors VMware and Broadcom are, where there would be potential overlaps, as well as which products are potentially substitutable, said the first source. One of the questionnaires focuses on horizontal overlaps, this source said.

Customers are asked to provide views on the potential impact of the transaction, on how Broadcom may behave and what its incentives might be post-closure, said the first source.

A spokesperson for Broadcom said that the company is confident that this deal does not present any competition issues and that it looks forward to working with the EC throughout this process. 

“We continue to make progress with our various regulatory filings around the world and expect the transaction to be completed in Broadcom’s fiscal year 2023. The combination of Broadcom and VMware will give customers choice and greater flexibility to address their most complex IT infrastructure challenges,” said the spokesperson. VMware referred to Broadcom for questions concerning the regulatory reviews of the deal.

The EC does not comment on ongoing merger reviews.