UK Antitrust Authority Investigates IBM’s $6.4 Billion HashiCorp Acquisition

The UK’s Competition and Markets Authority (CMA) has initiated an investigation into IBM’s planned acquisition of HashiCorp, a leading cloud software provider. The investigation aims to assess whether the deal would reduce competition in the cloud and AI markets.

What is IBM’s HashiCorp Acquisition?

IBM announced in April that it had agreed to acquire HashiCorp for approximately $6.4 billion. HashiCorp, founded in 2012, offers tools that help companies manage cloud infrastructure and security. The acquisition would grant IBM access to HashiCorp’s diverse customer base of approximately 4,400 clients, further bolstering its cloud and AI capabilities.

The CMA Review Process

The CMA has begun its investigation into the potential impact of the acquisition on competition in the market. The regulator has invited public comments on the merger, with a deadline set for January 16. A final decision will be made by February 25, determining whether the deal will be approved or referred for additional scrutiny.

Other Investigations

In addition to the CMA’s review, the U.S. Federal Trade Commission (FTC) is also investigating the deal. Both regulatory bodies will evaluate the potential effects on the competition in the cloud computing and AI sectors.

Key Takeaways:

IBM’s $6.4 billion acquisition of HashiCorp is under investigation by the CMA.
The CMA is reviewing whether the deal would affect competition in the cloud and AI markets.
The final decision by the CMA is expected by February 25, 2025.
The U.S. FTC is also investigating the deal.

For more updates on this investigation, you can follow the latest developments through the WSJ: IBM’s Planned $6.4 Billion HashiCorp Takeover Faces U.K. Antitrust Scrutiny.