Antitrust regulators in the European Union are set to approve American chipmaker Broadcom’s (AVGO) $61 billion U.S. acquisition of cloud computing firm VMware (VMW).
The Reuters News Agency is reporting that the European Commission plans to approve the deal subject to Broadcom agreeing to several “remedies” aimed at addressing competition concerns.
The European Union’s antitrust regulator has until July 17 to officially issue a decision on Broadcom’s purchase of VMware.
One of the remedies the European regulator is requesting from Broadcom relates to Fibre Channel Host-Bus Adapters (FC HBAs) and is aimed at appeasing rival chipmaker Marvell Technology (MRVL).
FC HBAs are storage adapters that connect servers to storage located outside a server on a storage-area network using fibre channel protocols. Broadcom is a major supplier of FC HBAs.
Broadcom mostly makes microchips that are used in data centres for networking, as well as specialized chips that support artificial intelligence (A.I.) applications and platforms.
Broadcom’s stock has gained 55% over the last 12 months to trade at $804.62 U.S. per share.
VMWare’s share price has risen 11% in the past year to $135.38 U.S.