Broadcom’s hopes of quickly completing its acquisition of VMware have taken a new hit. The UK Markets Inspectorate must conduct further investigations.

CMA launched an investigation in November, and after the first phase, further investigations appear to be necessary. This was announced by the British market surveillance authority in a press release yesterday. According to the agency, there are reasonable fears that Broadcom’s takeover of VMware would have a negative impact on prices and innovation. A “phase 2” study is to provide further information.

It has been almost a year since Broadcom announced the acquisition: On May 26, 2022, both parties reached an agreement. At the time, Broadcom thought it would be able to finalize the formalities by early this year, but the acquisition has been stuck since then. A new deadline was October 30, but it appears that it will not be met again. The CMA follow-up is expected to last through September.

A stick between the wheels

There are still a few things on the table that the UK wants to rule out before the green light is given. For example, Broadcom could abuse VMware’s position to limit virtual machine compatibility to servers running its parent company’s components. The agency is also listening to concerns from VMWare customers who fear price increases. VMware employees are also cool lovers of the takeover plans.

In addition, the European Commission and the American FTC are also conducting their own investigations, the judgments of which are still pending. In other words, the VMware acquisition seems unlikely by the day. The mother and adopted daughter remain in agreement that the transaction can be completed.