Broadcom, VMware sink as EU opens up 'in-depth' investigation into $61B merger
Broadcom (NASDAQ:AVGO) and VMware (NYSE:VMW) shares fell in mid-day trading on Tuesday as the European Union said it would open up an "in-depth" investigation into its $61B merger of software company VMware (VMW).
In a statement issued on Tuesday, the European Commission said it was "particularly concerned" that the deal could allow Broadcom (AVGO) to restrict competition for certain hardware components that operate with VMware's (VMW) software.
The primary concerns are related to network interface cards, fiber channel host-bus adapters, or FC HBAs, and storage adapters.
The statement added that the Commission has until May 11, 2023 to make a decision on whether to make a final decision and that the in-depth inquiry does not prejudge the final result of the investigation.
âWe look forward to continuing our constructive work with the European Commission as part of their thorough review process," a Broadcom spokesman told Seeking Alpha via email.
The spokesman added that the deal has already received legal merger clearance in Brazil, South Africa, and Canada, and foreign investment control clearance in Germany, France, Austria, and Italy.
The spokesman also noted that the deal is expected to close in Broadcomâs (AVGO) fiscal year 2023. 
The deadline for an EC review of the deal was today.
Earlier this month, it was reported that the Federal Trade Commission review of Broadcom's (AVGO) $61B planned acquisition of VMware (VMW) was said to be focused on conglomerate effects of the combination.
In May, Broadcom (AVGO) announced that it was acquiring VMware (VMW) for $61B in cash and stock.
Updated to include comment from Broadcom spokesman.