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UK antitrust watchdog launches review of IBM’s HashiCorp takeover
The Competition and Markets Authority (CMA), the UK’s antitrust watchdog, has opened an investigation into whether IBM’s planned acquisition of cloud software vendor HashiCorp would affect competition in the market. The move is part of a thorough examination to ensure that the proposed merger does not harm consumers or stifling innovation.
IBM announced its intention to acquire HashiCorp in April for around $6.4 billion, which will significantly expand its presence in the cloud and AI sectors. With this deal, IBM would gain access to HashiCorp’s extensive roster of about 4,400 customers, further solidifying its position in the market.
HashiCorp, founded by Mitchell Hashimoto and Armon Dadgar in 2012, specializes in providing tools that aid in managing cloud infrastructure and security. The acquisition would allow IBM to bolster its offerings and strengthen its capabilities in this area.
The CMA has invited interested parties to submit their comments on the proposed merger by January 16. A provisional deadline of February 25 has been set for the regulator to decide whether to clear the deal or refer it for further review.
In a related development, the US Federal Trade Commission (FTC) is also conducting an investigation into the acquisition. This joint effort by the CMA and FTC will provide a comprehensive assessment of the proposed takeover and its potential impact on competition in the market.
The move by the regulators comes as IBM’s push to expand its presence in the cloud and AI continues, with this deal being a significant step towards achieving that goal.
Source: techcrunch.com
