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FTC ‘Second Request’ Investigation Of Broadcom-VMware Deal Launches: 5 Things To Know

O’Ryan Johnson

Broadcom told CRN in a statement that it had expected the ‘second request’ by the FTC and Justice Department due to Broadcom and VMware’s size and scale.

This has this derailed previous tech mergers 

Nvidia terminated its $40 billion deal to acquire British chip designer Arm, citing “significant regulatory challenges,” the chipmaker said in February of this year following a second request that resulted in the FTC suing to block the merger.

Nvidia and Arm’s owner, Japan-based SoftBank Group, said the decision was mutual, resulting from “challenges preventing the consummation of the transaction, despite good faith efforts by the parties.”

In 2018, Broadcom’s $103 billion deal for Qualcomm fell apart following a “second request” after regulatory officials who dug into the transaction cited national security concerns, owing to Broadcom’s foreign ownership. Broadcom has since relocated its corporate headquarters to the U.S.

Prior to that deal’s collapse, Broadcom told Reuters it “had anticipated the second request as a normal part of the regulatory approval process.”

 
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O’Ryan Johnson

O’Ryan Johnson is a veteran news reporter. He covers the data center beat for CRN and hopes to hear from channel partners about how he can improve his coverage and write the stories they want to read. He can be reached at ojohnson@thechannelcompany.com..

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