U.S. chipmaker Broadcom is set to gain conditional EU antitrust approval for its $61 billion proposed acquisition of cloud computing firm VMware, Reuters news report said.
The European Commission’s clearance is tied to remedies relating to Broadcom’s interoperability with rivals that would address competition concerns.
The EU antitrust watchdog is scheduled to decide on the deal by July 17.
One of the remedies focuses on Fibre Channel Host-Bus Adapters (FC HBAs) and is targeted at rival Marvell Technology.
FC HBAs are storage adapters that connect servers to storage located outside the server on a storage-area network using the fiber channel protocol, typically through a switch. Broadcom is a leading supplier of FC HBAs.
Broadcom’s other key hurdle is in Britain where the British competition agency will next month announce its provisional findings about the deal and possible remedies if required.
The U.S. Federal Trade Commission is also investigating Broadcom’s VMware acquisition.
Broadcom, which supplies chips used in data centres for networking and specialised chips that speed up AI work, announced the deal, its biggest, last year to diversify into enterprise software.