Dell and EMC deal gets European Commission permission!

Dell’s $67 billion takeover of data storage giant EMC got a green signal from European Commission on Monday this week. It has to be notified over here that last week at the same time, the Federal Trade Commission approved the deal. Thus, with the latest permission, Dell’s dream to acquire EMC has completed the second step on a successful note.

All that’s left now is for Dell to find the cash to fund its purchase – more than $40bn worth of greenbacks.

EU Commission endorsed the deal as both the companies provided data storage system, and, in particular, external enterprise storage systems with respective market share.

Dell is an active player in computing technology market and occupies a good share in the market of servers based on x86 architecture. VMware, a business unit of EMC, is a supplier of virtualization software that can be used in conjunction with these types of servers and storage products.

EU Commissioner Margrethe Vestager, in charge of competition policy, 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 ( of both servers and storage).”

The EU Commission’s investigation assessed the effects of the transaction on the market for external enterprise storage systems. It also investigated the risk that the merged entity could attempt to restrict or degrade access to VMware’s software for competing hardware vendors.

This clearly means that the EU Commissioner also investigated on the issue of Dell trying to downgrade VMware, by acquiring its parent company EMC.

The submitted report from the EU commissioner said that the new storage giant will continue to face strong competition from big established players, such as Hitachi, HP, IBM and NetApp, as well as startups and companies like StoneFly, Inc.

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