Dell Gets China Approval And Intends To Complete Merger With EMC On Sept. 7

(RTTNews) - Dell Inc. and EMC Corp. (EMC) announced that they intend to close the transaction to combine Dell and EMC on September 7, 2016. Dell Technologies, the name of the new combined company, will begin operating immediately following the close of the transaction.

The announcement follows regulatory approval of the Dell and EMC transaction by China's Ministry of Commerce or MOFCOM, which has granted clearance for the companies' proposed combination. MOFCOM approval was the final regulatory condition to closing the transaction.

EMC shareholders approved the transaction on July 19, with approximately 98 percent of voting EMC shareholders casting their votes in favor of the merger, representing about 74 percent of EMC's outstanding common stock.

At closing, EMC shareholders will receive $24.05 per 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 about 0.111 shares of new tracking stock for each EMC share.

Upon close of the transaction, EMC shares under the ticker symbol "EMC" will be suspended from trading on the New York Stock Exchange. Shares of the tracking stock, trading under the ticker symbol "DVMT," are expected to begin trading on the New York Stock Exchange on Wednesday, September 7.

In October 2015, PC maker Dell Inc. agreed to acquire data-storage company EMC Corp. for about $67 billion in cash and stock, while maintaining EMC's virtualization software company VMware Inc. (VMW) as a publicly-traded company. The acquisition would be made by Dell, together with its owners, Michael Dell, founder, chairman and chief executive officer of Dell, MSD Partners and private equity firm Silver Lake.