Broadcom’s CEO, Hock Tan, will make a case to EU antitrust regulators today in Brussels for the approval of the company’s proposed $61 billion bid for cloud computing company VMware. The deal has come under scrutiny on both sides of the Atlantic.
The Hearing
Tan and his team, including lawyers and executives, arrived in Brussels early this morning for a closed hearing. The CEO declined to comment on his way into the meeting. Tan will present his arguments to senior European Commission officials, including Guillaume Loriot, the deputy director general for mergers, and lawyers from the EU executive. VMware President Sumit Dhawan will appear remotely at the hearing. No other third parties are present.
Regulatory Concerns
Broadcom requested the hearing after the European Commission warned last month that the deal could restrict competition in the market for certain hardware components that interoperate with VMware’s software. The company had hoped that the presence of Amazon, Microsoft, and Google in the cloud computing market would be seen as proof of strong competition. However, regulators have remained concerned about the potential impact on the market.
Remedies Expected
Broadcom is expected to offer remedies in the coming days following the oral hearing. The EU deadline for a decision is June 21, which will be extended once concessions are submitted. The company will need to convince regulators that the deal is pro-competitive and will not harm competition in the market.
Broadcom’s CEO is set to argue for the approval of the company’s proposed $61 billion bid for VMware in front of EU antitrust regulators. The deal has come under scrutiny due to concerns about its impact on competition in the market. Broadcom is expected to offer remedies in the coming days to address these concerns. The EU deadline for a decision is June 21.
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