Dell-EMC merger gets European clearance

Courtesy image

Write a Comment

By Sam Bonacci

The $67 billion acquisition of EMC by Texas-based Dell has been cleared by the European Commission, paving the way for the largest IT merger in U.S. history.

The EC gave the acquisition of EMC by Dell unconditional clearance. This decision follows another recent win for the purchase with the U.S. Federal Trade Commission raising no issues with the acquisition and clearing the way for the merger in the U.S.

The Dell-EMC combo, which will retain EMC subsidiary VMware, will be the most expensive technology merger in history when the deal closes. The takeover's $67 billion price tag is way above the current record-holding tech buy -- the $25-billion sale of Compaq Computer to Hewlett-Packard in 2002.

The transaction remains subject to approval by EMC's shareholders, with a vote expected in the spring. Regulatory clearance in certain other jurisdictions and other customary closing conditions must also take place. The acquisition of the Massachusetts information storage company by the mammoth Texas computer company is set to sail through the European Union's antitrust regulators without any concessions.

Unresolved in the matter is what would happen to EMC employees, including the nearly 10,000 in Massachusetts. The question of jobs comes as VMware has announced it will lay off 800 employees and a new chief financial officer will come in. The layoffs are expected to cost the company $55-$65 million in the first half of 2016 but will result in savings moving forward, according to the company.