EMC shareholders give Dell deal the thumbs up

Just Chinese approval to go before acquisition gets the green light

Gaining regulatory approval from China and satisfying customary closing conditions are the two remaining hurdles for Dell as it plans to acquire EMC, after the latter's shareholders voted overwhelmingly in favour of the deal yesterday.

Some 98 per cent of voting EMC shareholders were in favour of the merger. But those people represented only 74 per cent of EMC's outstanding common stock as of yesterday. A full breakdown of the vote will be published in an 8-K filing later this week.

Yesterday, when questioned by an analyst on an EMC earnings call, its chief executive Joe Tucci denied that waiting on approval from China was "delaying" things, insisting that the appropriate processes are being followed.

Following yesterday's shareholder vote, EMC claims the transaction is expected to close on the original terms and within the originally announced timeframe - before October.

When the deal does go ahead, the family of companies will be known as Dell Technologies. The PC business will retain the Dell moniker, while the enterprise unit in which EMC will sit will be referred to as Dell EMC.

A new joint Dell EMC partner programme is due to come into place by February.

EMC's Tucci reiterated the message that the combined entity will be a "powerhouse in the technology industry" and added that he is pleased with the outcome of the shareholder vote.

"The board and I care very deeply about, and have worked diligently to represent, what we believe is the best outcome for all stakeholders," he said. "I want to thank our shareholders for their support, as well as our customers and partners. My special thanks to the talented people of EMC for their hard work, dedication and passion."