Dell wins European approval for $67bn EMC takeover
February 29, 2016 5:43 pm
European regulators approve Dell’s $67bn (£48bn) bid to take over EMC, the world’s largest data storage company.
Approval from the European Commission was the last big regulatory hurdle Dell needed to overcome to close the deal.
Dell hopes the purchase of EMC will allow it better compete with IBM, Cisco Systems, and Hewlett-Packard in cloud computing and cyber security.
The EC said the combined company would still face strong market competition.
EU competition commissioner, Margrethe Vestager, said: “I am pleased that we have been able to approve Dell’s multibillion dollar takeover of EMC within a short space of time while making sure that there would be no adverse effects on customers.”
The deal won approval from US regulators earlier this month.
The two companies are still waiting regulatory approval in smaller markets.
EMC shareholders also need to approve the deal, but a spokesperson for Dell said that European approval was “a strong sign the deal was running on time and under the original terms”.
The transaction is expected to close before Dell’s third quarter ends in July.
The purchase of EMC is part of a series of changes founder Michael Dell and his partners, Silver Lake, have made since taking the company private in 2013.
Mr Dell founded the company in 1984.
He has a combined Dell/EMC would create a “powerhouse” in the $2 trillion IT sector.