IBM to win unconditional EU okay for $34 bln Red Hat deal - sources

Credit: REUTERS/SERGIO PEREZ

U.S. tech giant International Business Machines Corp is set to secure unconditional EU approval for its $34 billion bid for software company Red Hat, people familiar with the matter said on Wednesday.

By Foo Yun Chee

BRUSSELS, June 19 (Reuters) - U.S. tech giant International Business Machines Corp IBM.N is set to secure unconditional EU approval for its $34 billion bid for software company Red Hat RHT.N, people familiar with the matter said on Wednesday.

IBM is seeking to expand its subscription-based software offerings via the deal, its biggest to date, to counter slowing software sales and waning demand for mainframe servers.

It would also help it catch up with Amazon AMZN.O, Alphabet Inc GOOGL.O and Microsoft MSFT.O in the fast growing cloud computing business.

The European Commission, which is scheduled to decide on the deal by June 27, and IBM declined to comment.

Founded in 1993, Red Hat specialises in Linux operating systems, the most popular type of open-source software and an alternative to proprietary software made by Microsoft.

U.S. regulatory authorities gave the green light to the deal last month without demanding concessions.

(Reporting by Foo Yun Chee; Editing by Alissa de Carbonnel and Elaine Hardcastle)

((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More