View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Data
March 1, 2016updated 05 Sep 2016 8:09am

EU approves Dell’s $67bn EMC takeover

News: The European Commission said the merged entity would have a moderate market share in external enterprise storage systems.

By CBR Staff Writer

The European Commission has approved Dell’s proposal to acquire data storage firm EMC for $67bn.

This follows approval granted by US regulators last month, with both the firms still awaiting regulatory approval in smaller markets.

EMC shareholders should also approve the deal, which is anticipated to close before Dell’s third quarter ends in July this year.

The deal came under the commission’s scrutiny as Dell and EMC both offer data storage systems, and, especially, external enterprise storage systems.

Dell is also active in servers based on x86 architecture. VMware, a company controlled by EMC, supplies virtualisation software that can be utilised in conjunction with these types of servers and storage products.

The commission’s probe evaluated the effects of the transaction on the market for external enterprise storage systems.

It also looked at the risk that the merged entity could attempt to restrict or degrade access to VMware’s software for competing hardware vendors.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

The commission found that the merged entity will have a moderate share in the market for external enterprise storage systems and in any event the increment brought about by the merger is small.

It said that the merged entity will continue to face stiff competition from established players, including Hitachi, HP, IBM and NetApp, as well as from new entrants.

EU competition commissioner Margrethe Vestager said: "Given the strategic importance of the data storage sector, I am pleased that we have been able to approve Dell’s multi-billion dollar takeover of EMC within a short space of time while making sure that there would be no adverse effects on customers.

"I appreciate the close cooperation we have enjoyed with our US counterparts at the Federal Trade Commission."

The combination of Dell and EMC will create the world’s largest privately-controlled, integrated technology company.

The combined company will be a leader in the high-growth areas of the $2 trillion information technology market with complementary product portfolios, sales teams and R&D investment strategies.

It will have strong capabilities in the areas of digital transformation, software-defined data centre, hybrid cloud, converged infrastructure, mobile and security.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.