IBM-Red Hat deal awaits regulatory approval

IBM (IBM) is waiting for approval from European Union (EZU) antitrust regulators for its $34 billion potential acquisition of Red Hat. The deal already received US regulatory approval earlier this month without any conditions.

The European Union will likely give its decision on the IBM-Red Hat deal on June 27. The European Union can either approve the transaction with or without conditions or it can review the agreement. Both of the parties expect the deal to close in the second half of 2019.

Is IBM Close to Completing Its Red Hat Acquisition?

The deal

In October of 2018, IBM announced its largest-ever acquisition deal with Red Hat—the world’s leading provider of open source cloud software. The acquisition will likely help IBM expand into subscription-based software offerings. The acquisition would make IBM the world’s top hybrid cloud provider. IBM would help companies with an open cloud solution for their businesses. The acquisition would also help IBM catch up with Amazon and Microsoft.

The deal is expected to help revive IBM’s revenue growth, which has been declining on a year-over-year basis for three consecutive quarters.

Last week, IBM secured $20 billion through the sale of bonds to fund the Red Hat acquisition. The bond sale raised IBM’s total debt to over $60 billion. The company has decided to slow the pace of its share buybacks in the next two years to pay off its debt. IBM will continue to pay its dividend to shareholders.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

172.31.16.229