Broadcom and VMware are taking more time to complete the acquisition. The companies reported this to the US stock market regulator SEC.
Broadcom’s final acquisition of VMware is now to be completed by May 26, 2024, according to the statement to the SEC. Broadcom had anticipated the final acquisition of VMware before the end of its fiscal year 2023, which ends Oct. 30 this year, but has now determined that it wants to close it no later than May 26 2024, writes The Register. This means that the final date is almost eight months after the end of the current fiscal year.
Reasons for delay
Neither company gives a specific reason why the final date is now being postponed for a year. According to The Register, ongoing regulatory investigations are likely the cause.
Among other things, VMware and Broadcom are said to be too slow in providing information to the EU for its competition investigation, so approval from European competition authorities is not at all forthcoming for the time being. A verdict from the EU would not be until early June, it is expected.
The regulator in the UK plans to issue a judgment next month, the tech website continues, but this could mean that further investigations may also need to be launched. The competition regulator in the U.S., the FTC, has yet to give any timeline at all on a verdict on the acquisition.
Also read: UK launches official investigation into Broadcom-VMware acquisition
14 hours ago
