UK regulator begins probe into USD 61 bn Broadcom-VMware merger
VMware was acquired by chip and software maker Broadcom from Dell Technologies for $61 billion in May this year.
London, Nov 21: The UK's Competition and Markets Authority (CMA) on Monday began an investigation into Broadcom's proposed USD 61 billion deal to buy virtualisation software giant VMware, as regulatory scrutiny tightens into the merger.
"The CMA has decided to investigate this transaction and is inviting comments from any interested party. This case page will be updated when the CMA formally commences its phase 1 investigation," the US agency said in a statement.
Meanwhile, the European Commission is also investigating the Broadcom-VMware merger. The regulatory arm of the European Union expects to deliver its initial decision on December 20.
The US Federal Trade Commission (FTC) is in an advanced stage of its investigation into the proposed merger.
In September, the US Securities and Exchange Commission (SEC) charged VMware for misleading investors by obscuring the company's financial performance.
VMware allegedly misled investors about its order backlog management practices, which enabled the company to push revenue into future quarters by delaying product deliveries to customers.
"As the SEC's order finds, by making misleading statements about order management practices, VMware deprived investors of important information about its financial performance," said Mark Cave, Associate Director in the Division of Enforcement.
"Such conduct is incompatible with an issuer's disclosure obligations under the federal securities laws," Cave said in a statement.
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