EMC Global X Emerging Markets Great Consumer ETF

By Rachael King 

Dell Inc. Tuesday said it received regulatory clearance from China and intends to complete its merger with EMC Corp. on Sept. 7. The $60 billion deal will be the largest technology merger ever.

Approval from China's Ministry of Commerce was the last remaining hurdle to the deal, which was approved by EMC shareholders on July 19.

The newly combined company, to be named Dell Technologies, aims to be a one-stop shop for information technology sold to businesses.

Dell hopes to make the combined company a favored supplier in the rapidly growing market for cloud computing, where companies tap software programs via the internet.

Dell will face intense competition from Amazon.com Inc.'s Web Services unit, the leader in the market. Amazon Web Services is so far ahead in the cloud market, some analysts have questioned Dell's ability to compete.

In an interview with The Wall Street Journal on Monday, Dell Chief Executive Michael Dell said there will be room for other competitors, particularly those selling to companies that want to build their own cloudlike systems. While some predict that most corporate computing will move to third-party systems like Amazon's, "I think that's wrong," Mr. Dell said.

The market is in its early stages, and there will be many different types of clouds, said Mr. Dell.

"There will be growth in the public clouds and still an enormous amount of on-premise infrastructure, and there will be a lot of service providers outside of the major clouds that are also growing," he said.

The combined company will be the leading vendor by revenue in the world-wide $29 billion market supplying hardware to cloud-computing providers. In 2015, Dell and EMC combined garnered 18.2% of the highly fragmented market, according to market watcher International Data Corp. That market is characterized by low-margin hardware.

Dell, which is privately held, is buying not only EMC but its federation of wholly and partially owned subsidiaries including cybersecurity firm RSA Security LLC, software development company Pivotal Software Inc. and virtualization software vendor VMware Inc.

EMC shareholders will receive $24.05 a share in cash in addition to a newly issued tracking stock linked to a portion of EMC's economic interest in the VMware business. Based on the estimated number of EMC shares outstanding at the close of the transaction, EMC shareholders are expected to receive approximately 0.111 shares of the new tracking stock for each EMC share.

Write to Rachael King at rachael.king@wsj.com

(END) Dow Jones Newswires

August 30, 2016 16:25 ET (20:25 GMT)

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