IBM-Red Hat Deal Approved by Department of Justice

The U.S. Department of Justice has given its approval for the $34 billion acquisition of Red Hat by IBM, according to a regulatory filing:

“On May 3, 2019, IBM was informed that the U.S. Department of Justice has concluded its review of IBM’s proposed acquisition of Red Hat without remedies or conditions and received a notice of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. IBM and Red Hat continue to work with competition authorities in other jurisdictions, and IBM continues to expect the transaction to close in the second half of 2019.”

The proposed acquisition was announced in Q4 2018, and approved by Red Hat shareholders in early 2019.

IBM has said that upon closing of the acquision, Red Hat will become a distinct unit within IBM's Hybrid Cloud organization. Red Hat will continue to be led by its current management team, including CEO Jim Whitehurst, who will also join IBM's senior management team and report to Ginni Rometty. IBM has said it intends to maintain Red Hat's headquarters, facilities, brands, and practices.

Related Articles

IBM Purchase of Red Hat Keeps Moving Forward with European Commission Approval

Posted July 01, 2019