Broadcom rises even as UK regulator plans in-depth investigation into VMware deal
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Broadcom (NASDAQ:AVGO) shares rose in early trading on Wednesday even as the U.K.'s antitrust regulator said it would be moving its review of the company's potential VMware (NYSE:VMW) acquisition into another phase. 
In a statement, the Competition and Markets Authority, or CMA, said it had moved the merger into Phase 2, or an in-depth investigation, with the deadline set for September 12, 2023.
VMware (VMW) shares were fractionally higher after the news.
A Broadcom (AVGO) spokesman reiterated its previous comment and that it is "working constructively" with the CMA on the matter.
Last week, the CMA said the deal could make servers more expensive in the U.K., specifically raising the prices of network interface cards, storage adapters and virtualization software.
The $61B cash-and-stock deal first came under scrutiny in the U.K. in November when the CMA said it was looking into the deal to see if it could result in a "substantial lessening of competition."
In May 2022, Broadcom (AVGO) announced its intentions to acquire VMware (VMW) with the intent to transform the company from overly relying on semiconductors and more on software and services.
Broadcom (AVGO) reported strong first-quarter results and guidance earlier this month, leading to substantial praise from Wall Street.