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MLex Market Insight

Why Broadcom’s VMware play points to Nvidia-Arm parallels; and Glencore’s bribery debacle

MLex Market Insight

MLex Market Insight

News

4.99 Ratings

🗓️ 6 June 2022

⏱️ 27 minutes

🧾️ Download transcript

Summary

The nature of Broadcom’s $61 billion buyout of California-based cloud giant VMware is posing new challenges for regulators on both sides of the Atlantic, with horizontal overlaps no longer the biggest show in town. The nature of the deal has left M&A observers to review parallels with the Nvidia’s bid to acquire British software designer Arm; and for both deals, the issue of how innovation could be affected is playing a big part in the reviews. Also on today’s podcast, the incredible story of Swiss mining and commodities company Glencore, which has agreed to pay a fine of $1 billion for having paid over $100 million in bribes to officials in Africa and South America. And there may be more enforcement pain on the way.

Transcript

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0:00.0

And here we are yet again appearing in your feed a few days late to allow our London-based marketing team to take some time off to celebrate the Platinum Jubilee.

0:20.6

And there's nothing like some

0:21.8

pomp and ceremony to get the collective heart of our London office pumping. But we're here

0:27.5

nonetheless and the product remains the same, a weekly podcast covering the top stories in regulatory

0:33.3

affairs with the assistance of Emlex's team of reporters around the world. My name is James Panicki.

0:40.2

I'm a senior editor with our Asia Pacific team and it's great to have your company.

0:45.3

Now in just over 10 minutes time, we'll bring you the incredible story of Swiss mining and

0:50.5

commodities company Glencore, which has agreed to pay a fine of one billion US

0:55.2

dollars for having paid over $100 million in bribes to officials in Africa and South America.

1:02.4

It's a whopping amount, but then again, if anyone can afford it, it's Glencore.

1:07.9

Our reporters Martin Coyle and Samuel Rubenfeld are standing by on either side

1:13.1

of the Atlantic to walk us through this incredible story of bribery, corruption and ongoing

1:18.7

regulatory risk. But speaking of billions of dollars, what are we to make of Broadcom's

1:24.4

$61 billion buyout of California-based cloud giant VMware.

1:29.9

Well, as it turns out, we're not the only ones pondering that question.

1:33.5

Regulators in both the EU and the US are set to grapple with some really tough M&A questions,

1:39.8

with one eye firmly on the potential for the deal affecting innovation.

1:44.6

Plus, Broadcom.

1:45.9

I mean, where have we heard that name before?

1:48.5

Yes, the California-based semiconductor company is no stranger to the merger spotlight.

1:54.8

Luckily for us, our EU-based reporter Natalie McNeilis is about to join us.

1:59.9

She's the co-author of a fine piece of

...

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