Welcome to the New Development of Botong's Acquisition of VMware Case? EU may release this week

Reuters quoted an insider as saying that the acquisition of cloud computing company VMware by Broadcom is likely to receive conditional approval from the European Union this week.

Sources have revealed that after months of negotiations with the European Union, Broadcom has signed remedial measures, including a commitment to incorporate interoperability standards into its software technology to help its competitor Marvell Technology gain a fairer market competition.

In fact, the European Commission emphasized in April this year that unless there are sufficient remedial measures, the acquisition of Botong will not be approved. They believe that this transaction may lead to issues such as increased costs, decreased quality, and reduced innovation for corporate customers.

The report points out that last month, Broadcom successfully addressed the concerns of the European Commission regarding its Fibre Channel host bus, the Fiber Channel Control Card (FC HBA), by providing interoperability remedies to its competitor Marvell Technology. At present, Botong is already a leading supplier in the field of FC HBA. FC HBA is a storage fiber channel control card located outside the server that connects the server to a storage area network using the fiber channel protocol.

In recent years, in order to strengthen the company's software business and establish the largest and most diversified company in the chip industry, Broadcom has acquired several large software companies, such as CA Technologies in 2018 for $18.9 billion, and Symantec's enterprise security business in 2019 for $10.7 billion. Now, the acquisition of Broadcom and VMware will become the largest case in Broadcom's history. Botong hopes to diversify its future development in the enterprise software field through this acquisition.

It is worth mentioning that in addition to the EU, the Federal Trade Commission of the United States and the antitrust authorities of the United Kingdom are also reviewing the acquisition case.