The UK’s Competition and Markets Authority (CMA) will fully investigate Broadcom’s proposed $61 billion takeover of VMware.

The CMA earlier this month said that the deal could lead to increased prices for computer parts and software for servers, questioning whether the deal would have an overall negative impact on the market.

At the time, it said: “The CMA is concerned that the deal could enable Broadcom to harm its rivals by preventing them from being able to supply VMware-compatible hardware components – such as NICs and storage adapters – reducing competition and ultimately choice for customers.”

Despite this, on Wednesday the regulator said that Broadcom had offered no undertakings within the five-day period after it published its concerns, As such, the CMA aid that it will proceed to an in-depth inquiry.

Such an inquiry can take up to six months, with the CMA setting a timeframe for the investigation ending 12 September.

In a document published March 29, CMA executive director of markets and mergers David Stewart said that that the regulator would investigate whether the deal would result in a "substantial lessening of competition" including for the supply of ethernet network-interface cards, fibre channel host-bus-adapters, storage adapters and fibre channel switches.

The statement added that the CMA will look at “whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

For its part, Broadcom earlier this month said that it was working constructively with the CMA and that it would demonstrate how the deal will benefit business and customers.

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