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WASHINGTON (Reuters) - U.S. chip giant Broadcom's $61 billion takeover of cloud computing firm VMware Inc faces setbacks as EU antitrust regulators prepare to launch a sweeping probe into the deal, people familiar with the matter said.
The acquisition, the world's second largest this year, represents Broadcom's attempt to diversify into enterprise software and comes as global regulators step up scrutiny of Big Tech acquisitions.
People familiar with the matter told us in October that Broadcom wanted early EU approval to buy cloud computing firm VMware, citing competition from Amazon, Microsoft and Google.
Earlier this week, Broadcom held a so-called "state of play meeting" with officials from the European Commission, the people said.
EU officials typically voice their concerns at such meetings, launching a full four-month investigation after an initial review of a deal if companies cannot convince them of the benefits of a takeover. The European Commission is due to complete its preliminary review of the deal on Dec. 20.
Broadcom said it expects the review process to take longer in other key regions due to the size of the acquisition, but the company believes the deal will close and close in fiscal 2023.
