The Dell Acquisition of EMC Gets a Step Closer to Completion

Numerous challenges still remain, however.

• By Keith Ward
• 02/23/2016

The next hurdle in the proposed mega-merger between Dell and VMware parent company EMC has been cleared. The companies are reporting that the Federal Trade Commission has approved the buyout, which will "create the world's largest privately-controlled, integrated technology company."

Much more has to be done to make the sale official, but this incremental step was an important one. Government interference in a sale has the potential to scuttle any deal, and even more so one as large as the $67 billion Dell said it would pay.

The so-called "waiting period" for any anti-trust concerns to be raised expired at 11:59 p.m. EST last night, the press release said, paving the way for Dell and EMC to keep moving forward. The biggest remaining challenge for the sale itself may be raising all the cash Dell needs, and which it doesn't currently have.

As reported earlier this month, Dell has found it difficult to come up with the necessary funding, due at least in part to a steep decline in tech stocks and an inability to dump assets. Once the merger takes place (assuming it does), the problems of integrating such large companies is another huge looming task. From VMware's point of view, the key question is whether or not Dell will maintain the hands-off management style that worked well when EMC owned the company.

In the press release, Dell CEO Michael Dell expressed his happiness with the FTC decision. "We are delighted that, with this key regulatory milestone now complete, we have taken another step on our path to becoming a combined company. Our teams are engaged in integration planning and all transaction-related workstreams are on track."