July 19 (UPI) — Computer chip and software program producer Broadcom moved a step nearer to its proposed $69 billion buy of virtualization chief VMware with the British Competition and Markets Authority clearing the deal on Wednesday.

“[The Competition and Markets Authority] has provisionally found that the potential financial benefit to Broadcom and VMware of making rival products work less well with VMware’s software would not outweigh the potential financial cost in terms of lost business,” the CMA mentioned in a statement.

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The company mentioned it additionally seemed into how the deal may drive Broadcom’s rivals to share commercially delicate data whereas working with VMware.

“The panel found the deal would be unlikely to harm innovation, in particular since information about new product adaptations only needs to be shared with VMware at a stage when it is too late to be of commercial benefit to Broadcom,” the CMA mentioned.

The approval leaves the Federal Trade Commission as the ultimate puzzle piece to the massive deal. The buy remained underneath investigation there at the same time as European Commission permitted it earlier this month.

The buy would permit Broadcom, which focuses on tech {hardware}, to interrupt into the infrastructure software program sector. The mammoth deal, although, has frightened watchdogs as a result of it could give Broadcom leverage in limiting and even degrading VMware’s help for Broadcom’s {hardware} rivals.

In May, Broadcom mentioned its cash-and-stock deal has already been permitted by the boards of each firms and would come with about $8 billion in VMware debt. The settlement on the time was believed to be the second-largest tech acquisition within the United States this yr, behind Microsoft’s practically $70 billion cope with Activision Blizzard.

“Computer servers — often using the products of Broadcom and VMware — play a critical role in enabling us to work in the office or at home or to access TV shows or use banking services,” Richard Feasey, chair of the CMA’s unbiased inquiry panel, mentioned in an announcement.

“That’s why it’s important we investigate this deal to ensure that U.K. businesses continue to benefit from competition and innovation in the supply of server components. After carefully considering a broad range of evidence, we have provisionally found that this deal would not harm competition.”