FTC Lays out Terms for Broadcom-Brocade Tie-Up -- Market Talk

Features Dow Jones Newswires

13:42 ET - Broadcom (AVGO) has agreed to set up a so-called firewall to address regulatory concerns over its proposed $5.5B acquisition of Brocade Communications Systems (BRCD). The Federal Trade Commission had raised concerns over AVGO's potential access to confidential information of BRCD's major competitor, Cisco Systems (CSCO). The consent order says AVGO, a supplier to both companies, has to maintain separate tech systems and facilities in managing its continuing relationship with CSCO. The FTC will also appoint a monitor to oversee compliance with the proposed arrangement for at least five years. The agreement is subject to public comment through Aug. 2. (maria.armental@wsj.com; @mjarmental)

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(END) Dow Jones Newswires

July 03, 2017 13:56 ET (17:56 GMT)