According to the Financial Times, European Union regulators are poised to approve Broadcom's (NASDAQ:AVGO) purchase of cloud software firm VMware (NYSE:VMW). However, the U.K. and U.S. competition authorities have yet to give their approval for the $69 billion deal, which is expected to be one of the largest tech takeovers.
The publication stated that four sources familiar with the matter told them that on Wednesday, the European Commission - the EU's executive body - will announce it has approved Broadcom's concessions. These concessions will ensure that VMware's software can still work with hardware from other companies.
VMware shares have reacted positively to the news, currently trading 6% higher. AVGO is flat at the time of writing.
They added that the concessions are enough to address European Commission competition concerns without the requirement for Broadcom to sell parts of the VMware business.
Despite European Union regulators joining Canada, Brazil, and South Africa in clearing the deal, it continues to face competition concerns and probes from the U.S., U.K., and China.
A deal for Broadcom to acquire VMware was agreed in May 2022, but it has resulted in worries from regulators regarding competition and a potential rise in prices.