BRUSSELS : U.S. chipmaker Broadcom is set to face a setback in its $61 billion bid for cloud computing company VMware with EU antitrust regulators poised to open a full-scale investigation into the deal, people familiar with the matter said.
Broadcom had been banking on early EU approval of the deal by pointing to competition from Amazon, Microsoft and Google in the cloud computing market, people familiar with the matter told Reuters in October. EU officials usually convey their concerns during such meetings and if companies fail to convince them of the merits of their takeovers, they then launch a full-scale four-month long investigation once their preliminary review of the deal ends.
Broadcom said it anticipates that the time-line for the review process would be extended in other key regions due to the size of deal.