Exclusive: EU regulators to approve $5.5 billion Broadcom, Brocade deal
Reuters
Published May 09, 2017 01:33PM ET
Exclusive: EU regulators to approve $5.5 billion Broadcom, Brocade deal
By Foo Yun Chee
BRUSSELS (Reuters) - Chipmaker Broadcom (O:AVGO) is set to win EU antitrust approval for its $5.5 billion bid for Brocade (O:BRCD) after agreeing to modest concessions in the latest deal in the chip sector, three people familiar with the matter said on Tuesday.
Singapore-based Broadcom, formerly Avago Technologies , is known for its connectivity chips used in products ranging from mobile devices to servers, while California-based Brocade makes networking switches, software and storage products.
The sector has seen a wave of consolidation in recent years as chipmakers scale up in response to the growing market in connected devices and cars.
Broadcom, which wants to grab a larger share of the data center products market via the deal, offered concessions last month in a bid to address the European Commission's concerns.
Brocade declined to comment. Broadcom shares gained after the Reuters story and were trading 1.6 percent higher at $228.7 in early trade while Brocade was up 0.39 percent at $12.64.
The people said Broadcom had made concessions on interoperability so clients can use whatever brand of switches on their network, independent of the supplier.
Broadcom also pledged to set up Chinese walls between technical teams developing components and others developing and marketing competing devices to ensure confidentiality, they said.
The Commission, which sought feedback from third parties, is expected to clear the deal by its scheduled May 12 deadline, according to the sources.
The EU competition enforcer declined to comment.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.