The UK\u2019s Competition and Markets Authority Monday approved the proposed $61 billion megamerger between Broadcom and VMware, saying that the deal would not substantially affect innovation or harm the ability of rivals to compete against the merged company.\nWhile Broadcom said that it expects to receive all regulatory approvals necessary to close the deal VMware deal by the end of October, it acknowledged that it is still working with some authorities to obtain consent, and said in a filing with the US Securities Exchange Commission on Monday that it has agreed with VMware to extend the "Outside Date" for the deadline to conclude the deal. The new date was not immediately specified by Broadcom.\n"Broadcom continues to work constructively with regulators in other jurisdictions and is in the advanced stages of the process toward obtaining the remaining required regulatory approvals," Broadcom said.\nThe deal has passed conditional muster with regulators in the EU, and Broadcom said in the filing that "the Hart-Scott-Rodino pre-merger waiting periods have expired, and there is no legal impediment to closing under U.S. merger regulations." In addition,\u00a0Australia, Brazil, Canada, Israel, South Africa, and Taiwan have approved the deal.\nBroadcom, VMware await Chinese regulatory approval\nBut approval from Chinese regulators, in particular, could prove a problem, as the government of that country appears to be holding back deals involving US companies, as part of the ongoing trade dispute that has seen the US ban China-manufactured equipment from some markets. For example, Intel's planned $5.4 billion acquisition of Israel-based Tower Semiconductor fell apart this month due to the failure of Chinese regulators to give approval in time to meet a deadline agreed upon by the two companies for the deal to close. China retains the right to approve mergers and acquisitions of companies that generate revenue from affiliates within its borders.\nMeanwhile, the approval of the UK's Competition and Markets Authority comes after the conclusion of the phase one investigation by an independent panel, after an earlier phase one inquiry raised the possibility that Broadcom\u2019s rivals would be less able to compete with it, due to the possibility of the company making VMware\u2019s server virtualization products less compatible with other hardware. It also explored the potential issue of Broadcom\u2019s rivals needing to share technical product information with VMware to ensure compatibility.\nHowever, the CMA found that neither concern was enough to bar the deal from taking place. On the compatibility issue, the panel said that the financial downside in terms of lost business would be enough to disincentivize the company from tinkering detrimentally with VMware\u2019s software, and that hardware specifications are only shared with VMware at a point in product development where the information is unlikely to be of value to Broadcom.\nThe panel said that it reviewed evidence from customers, rival hardware and software providers and more than 250,000 internal documents from Broadcom and VMware in reaching its decision.\n\u201cEven if the UK market represents a small proportion of total sales in a merger, the CMA\u2019s job is to scrutinize deals like this thoroughly to ensure they don\u2019t harm competition in the UK,\u201d said the chair of the independent panel that performed the investigation, Richard Feasey.\nIndustry watchers have voiced skepticism about the proposed merger since it was announced in May 2022. In addition to the competitive concerns investigated by regulators around the world, experts feel that a certain conservatism on Broadcom\u2019s part, in regard to its post-acquisition strategy for software companies, could damage VMware\u2019s position in the market.