Yahoo Finance VMware Extends Deadline for Takeover by Broadcom in Face of Scrutiny
(Bloomberg) -- VMware Inc. has agreed to extend the deadline for its takeover by Broadcom Inc. as the $61 billion deal faces regulatory scrutiny.
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The companies are now aiming to complete the purchase by Aug. 26, a three-month postponement from the previous date, VMware said in a filing on Friday. If the transaction doesn’t close by then — and regulatory approvals are the only remaining sticking point — either company could extend the deadline to Nov. 26.
The merger, which would unite VMware’s cloud-computing software with Broadcom’s chipmaking empire, is contending with an in-depth review in the European Union. Regulators for the region have warned that the deal could lead to “higher prices, lower quality and less innovation” for business customers.
Earlier this week, Broadcom offered antitrust commitments to the European Commission, aiming to allay the concerns. Regulators also extended their deadline to rule on the deal to July 17. The transaction is under close review in the UK as well, with the country’s Competition and Markets Authority looking to make a decision on whether to approve the merger by Sept. 12.
Broadcom first announced plans to acquire VMware on May 26, 2022, part of a broader push by Chief Executive Officer Hock Tan into software.
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