U.K.’s CMA clears Broadcom’s $69B deal to buy VMware

The CMA has cleared Broadcom’s (AVGO) $69B purchase of VMware (VMW) following an in-depth Phase 2 investigation, the CMA announced on Monday. The independent panel explored concerns that the deal could harm the ability of Broadcom’s rivals to compete if the merged company were to make their products work less well with VMware’s server virtualization software, but it has found that the potential financial benefit to Broadcom and VMware of making rival products work less well with VMware’s software would not outweigh the potential financial cost in terms of lost business, the CMA said. Following a consultation on its provisional findings, and having considered the feedback, the panel has confirmed its final decision is that the deal does not substantially reduce competition – clearing it to proceed in the UK.