Broadcom CEO ‘Confident’ VMware Deal Will Pass Muster With Global Regulators
Summary
Broadcom Software CEO Hock Tan is confident regulators will bless his $61 billion acquisition of VMware before the semiconductor giant finishes its fiscal year. “Sorry I can’t comment, but just to let you know we are making good progress.” Tan pointed out during the call that Broadcom has passed foreign investment control clearance in Germany, France, Austria, Denmark, Italy and New Zealand. We continue to be booked for fiscal 2023 and our lead times and visibility on semiconductors remain largely at 50 weeks.” However, its infrastructure software busienss took a 1 percent dip, which Tan attributed to poor performance of Brocade, a company Broadcom acquired in 2017. European Commission Executive Vice President Margrethe Vestager has said authorities there are concerned that Broadcom may turn off its competitors’ access to VMware, should the deal go through. The company is under a seven-year global settlement agreement that gives officials with the European Commission access to Broadcom’s sales contracts to ensure it is no longer drafting illegal deals with customers.
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