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© evertiq Electronics Production | February 29, 2016

EU clears Dell / EMC deal

The European Commission has approved the proposed acquisition of data storage and software provider EMC by Dell, under the EU Merger Regulation.
Commissioner Margrethe Vestager, in charge of competition policy, stated: "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 Commission 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.

However, the commission found that the merged entity has a moderate market share in the market for external enterprise storage systems and in any event the increment brought about by the merger is small. Meaning that a merged entity will continue to face strong competition from established players, such as Hitachi, HP, IBM and NetApp, as well as from new entrants.

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