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One major hurdle cleared for Dell's $67bn slurp of EMC
US Federal Trade Commission gives deal thumbs up
Dell and EMC have received US Federal Trade Commission clearance for their $67bn merger with the expiry of the 1976 Hart-Scott-Rodino Antitrust Improvements Act-mandated waiting period.
Under the terms of the HSR act, the corporate parties to a merger must file details with the FTC and US Department of Justice, and wait for 30 days or so to ascertain if the way ahead is clear or not.
The state agencies can request more information before deciding if the deal is anti-competitive under US anti-trust law. That waiting period has now terminated with no requests for additional info, meaning a major hurdle has been safely passed.
We’re reminded that the merger has to be approved by EMC’s shareholders and needs regulatory clearance in certain other jurisdictions, namely the European Commission.
Merger completion has a wide window - from May to October this year - but of course Texan Mick, CEO at Dell, has to find $40bn to fund the deal and this may be more of a challenge.
Not according to the man himself who said today:
"Our teams are engaged in integration planning and all transaction-related workstreams are on track.” ®