UPDATED 23:27 EDT / FEBRUARY 23 2016

NEWS

Dell/EMC merger gets FTC approval

Dell Inc. and EMC Corp.’s proposed merger moved one step closer to realization today when the U.S. Federal Trade Commission gave it the thumbs up following the expiry of the 1976 Hart-Scott-Rodino Antitrust Improvements Act-mandated 30-day waiting period.

The terms of the HSR Act state that all corporate parties in a proposed merger must file details of the move with both the FTC and the Department of Justice. That they did, and now both organizations have given the deal the go ahead.

The task of those two agencies is to establish whether or not any merger would be considered as “anti-competitive” under U.S. anti-trust laws, and they can request as much information as they need during the 30-day period. Luckily for Dell and EMC, both agencies seemed satisfied that the deal does not breach any laws, meaning a major hurdle on the path to completing the merger has been cleared.

Of course, the deal is still some way from being comprehensively done. Recent reports have suggested that Dell is having a bit of trouble coming up with the cash to finance the deal, though both the Texas-based firm and EMC insist everything is on track.

“Our teams are engaged in integration planning and all transaction-related workstreams are on track,” said Dell CEO Michael Dell in a statement.

There’s also the matter of several lawsuits which have been filed by dissatisfied shareholders looking to derail the deal, though those in the know believe says it’s unlikely these will stop the merger from happening. Still, EMC’s shareholders have yet to approve the deal themselves, and regulatory clearance is required in other jurisdictions too, such as the EU.

Dell has previously said the merger will be completed sometime between May and October of this year.

Image credit: InspiredImages via pixabay.com

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