The UK’s competition watchdog has given provisional approval for the $69 billion merger between Broadcom and VMware, marking the largest takeover it has ever investigated. Broadcom, a US computer chipmaker, proposed acquiring cloud technology firm VMware in May of last year. The deal includes a $61 billion purchase and the assumption of $8 billion in debt, making it equivalent in value to Microsoft’s proposed merger with video game maker Activision Blizzard. The Competition and Markets Authority (CMA) raised concerns that the merger could increase the cost of computer servers used by the UK government, banks, and telecoms companies. The CMA stated that merging the two technology giants could limit the supply of crucial computer parts and disadvantage rival companies, resulting in reduced choice and higher prices for customers. However, the CMA provisionally concluded that the deal would not significantly reduce competition in the supply of computer server hardware parts in the UK. The CMA also addressed concerns that the merged company could negatively impact the functionality of VMware’s software, which is used by competitors, but suggested that the financial benefits of the merger could outweigh any potential business losses. Additionally, the CMA stated that the deal would be unlikely to harm innovation, despite concerns that Broadcom would gain access to commercially sensitive information shared by rivals with VMware. The European Union’s executive commission approved the deal last week following its own thorough investigation. This provisional decision follows the CMA’s move to block Microsoft’s acquisition of Activision earlier this year due to concerns about stifling competition in the cloud gaming market. However, Microsoft argued that new developments warranted approval for the acquisition.