Broadcom CEO Seeks to Convince EU Antitrust Enforcers on VMware Deal
US chipmaker Broadcom’s Chief Executive Hock Tan arrived in Brussels on Friday to attend a closed hearing with EU antitrust enforcers. He will try to convince the officials of the benefits of his proposed $61 billion bid for cloud computing firm VMware. The deal has triggered scrutiny in the US and Europe on whether it is pro-competitive.
Tan will present his arguments to senior European Commission officials, including Guillaume Loriot, deputy director general for mergers, and their counterparts from national competition agencies. Lawyers from the EU executive will also be present at the hearing. VMware President Sumit Dhawan will appear remotely at the hearing, with no other third parties in attendance.
The Commission had warned last month that the deal may restrict competition in the market for certain hardware components which interoperate with VMware’s software. Broadcom had hoped that the presence of Amazon, Microsoft, and Google in the cloud computing market would be proof of strong competition. However, this argument did not sway the Commission officials.
Broadcom is expected to offer remedies in the coming days after the oral hearing. The EU deadline for a decision is June 21, but it will be extended once concessions are submitted.
Heading 1: Broadcom CEO Seeks to Convince EU Antitrust Enforcers on VMware Deal
Heading 2: What is the proposed deal?
Broadcom is a US-based chipmaker that has proposed to acquire the cloud computing firm VMware for $61 billion. The deal has come under scrutiny by antitrust enforcers in both the US and Europe. The CEO of Broadcom, Hock Tan, arrived in Brussels to attend a hearing with EU antitrust enforcers on the matter.
Heading 2: What is the hearing about?
The hearing is a closed session with senior European Commission officials, national competition agencies’ counterparts, and lawyers from the EU executive. Tan and his legal team will present their arguments in favor of the proposed acquisition of VMware. The officials will decide whether or not the deal is pro-competitive and does not harm the market and consumers.
Heading 2: Who else is participating in the hearing?
VMware President Sumit Dhawan will participate remotely in the hearing. No third parties will be present in the session.
Heading 2: What was the Commission’s concern?
The European Commission had warned last month that the deal could restrict competition in the market for certain hardware components that interoperate with VMware’s software. This was the main cause of concern for antitrust enforcers, who must ensure that the deal does not cause harm to the market or consumers.
Heading 2: What is Broadcom’s argument?
Broadcom had hoped that the presence of other big players like Amazon, Microsoft, and Google in the cloud computing market would prove that there is enough competition in the market. But it appears that this argument was not convincing enough for the Commission officials. Tan and his team are expected to offer remedies in the coming days after the hearing.
Heading 2: What’s next?
The EU deadline for the decision is June 21, which will be extended once concessions are submitted. The decision will be based on whether the proposed deal would harm the market or consumers. If the deal is approved, Broadcom will acquire VMware for $61 billion.
In conclusion, the proposed $61 billion deal by Broadcom to acquire VMware has come under scrutiny by antitrust enforcers in both the US and Europe. Broadcom CEO Hock Tan has attended a closed hearing in Brussels to convince EU officials that the deal is pro-competitive and will not harm the market or consumers. The hearing included senior European Commission officials, national competition agencies’ counterparts, and lawyers from the EU executive. VMware President Sumit Dhawan also participated remotely. Broadcom is expected to offer remedies in the coming days after the hearing. The EU deadline for a decision is June 21, which will be extended once concessions are submitted. The Commission officials will decide whether or not the deal would harm the market or consumers before offering approval.
