Broadcom Inc.’s $61 billion takeover of VMware Inc. was cleared by the UK’s antitrust watchdog, paving the way for one of the largest-ever tech deals.
The Competition and Markets Authority confirmed its provisional decision to clear the deal after finding that it wouldn’t substantially reduce competition in the supply of key computer server products, according to a statement on Monday.
VMWare shares rose 1.6% in early trading on Monday before New York exchanges opened. Broadcom declined less than 1% in premarket trading after closing at $825.84 on Friday.
Broadcom’s chips go into smartphones and home networking — in addition to data centers — making it a bellwether for a wide swath of tech spending. The company supplies semiconductors to Apple Inc. for the iPhone that provide short-range connectivity. VMware makes virtual software that allows users to access systems remotely.
US regulators have not yet weighed in on the tie-up, but the European Union’s antitrust arm approved the deal in July, with the firms agreeing to a set of remedies.
Broadcom said Monday that the Federal Trade Commission’s period for reviewing the deal had passed without a challenge. The FTC declined to comment on whether it continued to look into the merger.
Read More: Broadcom’s $61 Billion VMware Deal Gets Interim UK Clearance
“Broadcom continues to work constructively with regulators in other jurisdictions and is in the advanced stages of the process toward obtaining the remaining required regulatory approvals, which Broadcom believes will be received before Oct. 30,” the company said in a statement.
(Updates with FTC in the penultimate paragraph)
